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Pol Corp. acquired 80% of Gas Corp. on January 1, 2020.  Pol Corp. purchased inventory for P280,000 on April 1, 2020 and sold it to Gas Corp. for P380,000 on June 1, 2020.  Gas Corp. still holds the inventory at the end of the year, and determines that its market value is P328,000 at that time.  Gas Corp. writes the inventory down from P380,000 to P328,000 on December 31, 2020.  What amount of inventory should be eliminated in the consolidated working paper for 2020?*   a. P 48,000 b. P 56,000 c. P 60,000 d. P 52,000

Pol Corp. acquired 80% of Gas Corp. on January 1, 2020.  Pol Corp. purchased inventory for P280,000 on April 1, 2020 and sold it to Gas Corp. for P380,000 on June 1, 2020.  Gas Corp. still holds the inventory at the end of the year, and determines that its market value is P328,000 at that time.  Gas Corp. writes the inventory down from P380,000 to P328,000 on December 31, 2020.  What amount of inventory should be eliminated in the consolidated working paper for 2020?*   a. P 48,000 b. P 56,000 c. P 60,000 d. P 52,000

Intermediate Accounting: Reporting And Analysis
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
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
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Pol Corp. acquired 80% of Gas Corp. on January 1, 2020.  Pol Corp. purchased inventory for P280,000 on April 1, 2020 and sold it to Gas Corp. for P380,000 on June 1, 2020.  Gas Corp. still holds the inventory at the end of the year, and determines that its market value is P328,000 at that time.  Gas Corp. writes the inventory down from P380,000 to P328,000 on December 31, 2020.  What amount of inventory should be eliminated in the consolidated working paper for 2020?*

 

a. P 48,000

b. P 56,000

c. P 60,000

d. P 52,000

thanks for answering!

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