On January 1, 2021, Masaya Co. issued equity instruments in exchange for 75% interest in Lungkots Co. Lungkots Co.'s net identifiable assets have carrying amount and fair value of P300,000 and P360,000, respectively. The difference is attributable to a building with a remaining useful life of 6 years. The December 31, 2021 statements of profit or loss of Masaya Co. and Lungkots Co. are summarized below: Statements of profit or loss For the year ended December 31, 2021 Masaya Co. Lungkots Co. Revenues 1,200,000 480,000 Operating expenses Profit for the year (960,000) (400,000) 240,000 80,000
On January 1, 2021, Masaya Co. issued equity instruments in exchange for 75% interest in Lungkots Co. Lungkots Co.'s net identifiable assets have carrying amount and fair value of P300,000 and P360,000, respectively. The difference is attributable to a building with a remaining useful life of 6 years. The December 31, 2021 statements of profit or loss of Masaya Co. and Lungkots Co. are summarized below: Statements of profit or loss For the year ended December 31, 2021 Masaya Co. Lungkots Co. Revenues 1,200,000 480,000 Operating expenses Profit for the year (960,000) (400,000) 240,000 80,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
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Question
How much is the consolidated profit in 2021?
A. 310,000
B. 320,000
C. 301,000
D. 336,000
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