P Company acquired 70% of the ordinary shares of S Company at a time when S Company’s book values and fair values were equal. Separate income of P and Sfor 2022 are as follows: P S Sales 7,000,000 4,000,000 Cost of Sales 4,000,000 2,000,000 Dividend Revenue 490,000 0 Net Income 1,800,000 1,000,000 Intercompany sales from P to S for 2021 and 2022 are as follows: Cost Selling Price Sold as of year-end 2021 2,496,000 3,900,000 40% 2022 1,650,000 2,750,000 50% For the year 2022, compute for The consolidated Cost of Sales.
P Company acquired 70% of the ordinary shares of S Company at a time when S
Company’s book values and fair values were equal. Separate income of P and Sfor 2022 are
as follows:
P S
Sales 7,000,000 4,000,000
Cost of Sales 4,000,000 2,000,000
Dividend Revenue 490,000 0
Net Income 1,800,000 1,000,000
Intercompany sales from P to S for 2021 and 2022 are as follows:
Cost Selling Price Sold as of year-end
2021 2,496,000 3,900,000 40%
2022 1,650,000 2,750,000 50%
For the year 2022, compute for
The consolidated Cost of Sales.
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