On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain on acquisition of P100,000. Net assets of SCO were fairly valued except for inventory which was understated by P1,500,000. A third of these inventories remained unsold as of the end of the calendar year. The operations of the two companies for 2021 are as follows: РСО SCO Sales P3,100,000 P2,600,000 Quiz: Quiz 2 (COGS) (1,300,000) (1,250,000) Gross profit 1,800,000 1,350,000 (OPEX) (200,000) (150,000) Other income 200,000 (Other expenses) (120,000) Net income P1,480,000 P 400,000
On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain on acquisition of P100,000. Net assets of SCO were fairly valued except for inventory which was understated by P1,500,000. A third of these inventories remained unsold as of the end of the calendar year. The operations of the two companies for 2021 are as follows: РСО SCO Sales P3,100,000 P2,600,000 Quiz: Quiz 2 (COGS) (1,300,000) (1,250,000) Gross profit 1,800,000 1,350,000 (OPEX) (200,000) (150,000) Other income 200,000 (Other expenses) (120,000) Net income P1,480,000 P 400,000
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 19E
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Question
based on the information in the picture, In the consolidated statement of comprehensive income for the year ended December 31, 2021, how much is the consolidated net income attributable to the controlling interest?
a. 1,980,000
b. 1,860,000
c. 1,830,000
d. 1,760,000
Transcribed Image Text:On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain
on acquisition of P100,000. Net assets of SCO were fairly valued except for inventory
which was understated by P1,500,000. A third of these inventories remained unsold as
of the end of the calendar year.
The operations of the two companies for 2021 are as follows:
PCO
SCO
Sales
P3,100,000
P2,600,000
Quiz: Quiz 2
(COGS)
(1,300,000)
(1,250,000)
Gross profit
1,800,000
1,350,000
(OPEX)
(200,000)
(150,000)
Other income
200,000
(Other expenses)
(120,000)
Net income
P1,480,000
P 400,000
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