V Corp. owns 70% of F Corp’s ordinary shares. On August 1, 2020, F Corp. sold a machine to V Corp. for P290,000. The carrying amount of the machine is P170,000 and has a remaining life of 8 years. Due to this intercompany transaction, compute the net adjustment (increase/decrease) in the consolidated net income attributable to the non-controlling interest for 2020. * A. Answer not given B. P1,875 increase C. P6,250 increase D. P34,125 decrease E. P43,750 decrease
V Corp. owns 70% of F Corp’s ordinary shares. On August 1, 2020, F Corp. sold a machine to V Corp. for P290,000. The carrying amount of the machine is P170,000 and has a remaining life of 8 years. Due to this intercompany transaction, compute the net adjustment (increase/decrease) in the consolidated net income attributable to the non-controlling interest for 2020. * A. Answer not given B. P1,875 increase C. P6,250 increase D. P34,125 decrease E. P43,750 decrease
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 23E
Related questions
Question
V Corp. owns 70% of F Corp’s ordinary shares. On August 1, 2020, F Corp. sold a machine to V Corp. for P290,000. The carrying amount of the machine is P170,000 and has a remaining life of 8 years. Due to this intercompany transaction, compute the net adjustment (increase/decrease) in the consolidated net income attributable to the non-controlling interest for 2020. *
A. Answer not given
B. P1,875 increase
C. P6,250 increase
D. P34,125 decrease
E. P43,750 decrease
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning