What amount should be reported as depreciation expense in Pirn’s consolidated income statements? A. 50,000B. 47,000C. 44,000D. 41,000 Scroll Inc., a wholly owned subsidiary of Pirn, Inc. began operations on January 1, 20x2. Thefollowinginformation is from the condensed 20x2 income statements of Pirn and Scroll:ScrollP300,000(270,000)Р30,000(10,000)(15,000)Р 5,000PirnSalesP500,000Cost of goods soldGross profitDepreciationOther expensesIncome from operationsGain on sale of equipment to ScrollIncome before taxes(350,000)P150,000(40,000)(60,000)50,00012,000P62,000P 5,000Equipment purchased by Scroll from Pirn for P36,000 on January 1, 20x2, is depreciated using thestraight-line method over four years.

The question is multiple choice question. Required Choose the Correct Option.

Scroll Inc., a wholly owned subsidiary of Pirn, Inc. began operations on January 1, 20x2. The followinginformation is from the condensed 20x2 income statements of Pirn and Scroll: Pirn Scroll P300,000 (270,000) P30,000 (10,000) (15,000) P 5,000 Sales Cost of goods sold Gross profit Depreciation Other expenses P500,000 (350,000) P150,000 (40,000) (60,000) 50,000 Income from operations Gain on sale of equipment to Scroll Income before taxes 12,000 P62,000 P 5,000 Equipment purchased by Scroll from Pirn for P36,000 on January 1, 20x2, is depreciated using the straight-line method over four years.

Scroll Inc., a wholly owned subsidiary of Pirn, Inc. began operations on January 1, 20x2. The followinginformation is from the condensed 20x2 income statements of Pirn and Scroll: Pirn Scroll P300,000 (270,000) P30,000 (10,000) (15,000) P 5,000 Sales Cost of goods sold Gross profit Depreciation Other expenses P500,000 (350,000) P150,000 (40,000) (60,000) 50,000 Income from operations Gain on sale of equipment to Scroll Income before taxes 12,000 P62,000 P 5,000 Equipment purchased by Scroll from Pirn for P36,000 on January 1, 20x2, is depreciated using the straight-line method over four years.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 1BCRQ

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