PROBLEM 4-8 On January 1, 2020, 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 2020, P Company ships merchandise to S Company costing P1,000, 000 at 20% above cost. Additional data are as follows: P Company 5,500,000 3,200,000 650,000 S Company 2,500,000 1,600,000 300,000 Sales Cost of Sales Operating Expense The ending inventories of S Company includes merchandise from P Company amounting P60,000. Impaiment of goodwill is P20,000. How much is the consolidated gross profit?

PROBLEM 4-8 On January 1, 2020, 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 2020, P Company ships merchandise to S Company costing P1,000, 000 at 20% above cost. Additional data are as follows: P Company 5,500,000 3,200,000 650,000 S Company 2,500,000 1,600,000 300,000 Sales Cost of Sales Operating Expense The ending inventories of S Company includes merchandise from P Company amounting P60,000. Impaiment of goodwill is P20,000. How much is the consolidated gross profit?

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2P

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