On January 1, 2022, P Company acquired 80% of S Company for P2,000,000. The fair value of identifiable net assets is P1,800,000. NCI is measured at fair value. During 2022, P Company ships merchandise to S Company costing P1,000, 000 at 20% above cost. Additional data are as follows: P Company S Company Sales 5,500,000 2,500,000 Cost of Sales 3,200,000 1,600,000 Operating Expense 650,000 300,000 The ending inventories of S Company includes merchandise from P Company amounting to P60,000. Impairment of goodwill is P20,000. How much is the consolidated gross profit?
On January 1, 2022, P Company acquired 80% of S Company for P2,000,000. The fair value of identifiable net assets is P1,800,000. NCI is measured at fair value. During 2022, P Company ships merchandise to S Company costing P1,000, 000 at 20% above cost. Additional data are as follows: P Company S Company Sales 5,500,000 2,500,000 Cost of Sales 3,200,000 1,600,000 Operating Expense 650,000 300,000 The ending inventories of S Company includes merchandise from P Company amounting to P60,000. Impairment of goodwill is P20,000. How much is the consolidated gross profit?
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...
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On January 1, 2022, P Company acquired 80% of S Company for
P2,000,000. The fair value of identifiable net assets is P1,800,000. NCI is
measured at fair value. During 2022, P Company ships merchandise to S
Company costing P1,000, 000 at 20% above cost. Additional data are as
follows:
P Company S Company
Sales 5,500,000 2,500,000
Cost of Sales 3,200,000 1,600,000
Operating Expense 650,000 300,000
The ending inventories of S Company includes merchandise from P
Company amounting to P60,000. Impairment of
How much is the consolidated gross profit?
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