What amount of net income will be reported in the 20x9 consolidated income statement?
What amount of net income will be reported in the 20x9 consolidated income statement?
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 24P
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AA Corporation holds 80 percent of the stock of Movie Production Inc. During 20x9, AA purchased an inventory of snack bar items for P40,000 and resold P30,000 to MM Productions for P48,000. MM Productions Inc. reported sales of P67,000 in 20x9 and had inventory of P16,000 on December 31, 20x9. The companies held no beginning inventory and had no other transactions in 20x9.
What amount of net income will be reported in the 20x9 consolidated income statement?
In good Accounting form please. Thanks.
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