I want to correct answer A parent's beginning inventory contains $10,000 inunconfirmed profits on goods purchased from its subsidiary.The subsidiary's beginning inventory contains $8,000 inunconfirmed profits on goods purchased from its parent. Theparent owns 80% of the subsidiary.By what amount is consolidated net income to the controllinginterest increased by confirmation of profits on beginninginventories?a. $11,600b. $16,000c. $18,000d. $14,400

Step 1: Define Beginning InventoryThere is an accounting period during which every recording…

Answered: A parent's beginning inventory contains…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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69. A parent owns 80% of its subsidiary, and sells merchandise to its subsidiary at a 25% markup on cost. The subsidiary's ending inventory includes $750,000 purchased from the parent. The subsidiary's beginning inventory includes $825,000 purchased from the parent. What is the effect of the above on the parent's equity in net income of the subsidiary for the current year? a. P15,000 increase b. 70 Yukon C. P15,000 decrease d. no effect rod 75% porcent of the voting common stock of Ontario Corn on January 1 P12,000 increase
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A parent company regularly sells merchandise to its 80%-owned subsidiary. Which of the following statements describes the computation of non-controlling interest income? a. (The subsidiary’s net income + unrealized profits in the ending inventory – unrealized profits in the beginning inventory) x 20% b. The subsidiary’s net income times 20% c. The subsidiary’s net income x 20%) + unrealized profits in the beginning inventory- unrealized profits in the ending inventory d. The subsidiary’s net income + unrealized profits in the beginning inventory – unrealized profits in the ending inventory) x 20%
A parent company regularly sells merchandise to its 70%-owned subsidiary. Which of the following statements describes the computation of noncontrolling interest share? A. (The subsidiary's net income × 30%) + unrealized profits in the beginning inventory - unrealized profits in the ending inventory B. (The subsidiary's net income + unrealized profits in the ending inventory - unrealized profits in the beginning inventory) × 30% C. (The subsidiary's net income + unrealized profits in the beginning inventory - unrealized profits in the ending inventory) × 30% D. The subsidiary's net income times 30%
Intra-group Transactions (C) Parent Ltd owns 100% of Subsidiary Ltd. In the financial year ended 30 June 20X2, Subsidiary Ltd sold inventory to Parent Ltd. Details regarding the transaction are as follows: Cost to Subsidiary to produce inventory Sale price of inventory to Parent Ltd. Percentage of inventory still held by Parent Ltd at 30 June 20X2 Percentage of inventory still held by Parent Ltd at 30 June 20X3 Tax rate $7500 $8000 10% 0% 30% Round all your answers to the nearest dollar amount. If you believe no journal entry is required, select NULL for the account name, NA for the Dr or Cr, and enter 0 for the amount. Do not leave the amount blank. Do not enter dollar ($) signs or commas (i.e. enter 10000 not $10,000). The description may be missing from some of the journal entries below. This is intentional. Where journal descriptions are provided, you need to read them carefully and be sure your answers are consistent with the provided description. REQUIRED:
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A.Selected information from the separate and consolidated income statements of CHARTER LTD. and as subsidiary, MEMBER INC. for the year ended December 31, 2021 are as follows: |CHARTER LTD. P600,000 Consolidated P924,000 693,000 MEMBER INC. Sales P420,000 330,000 P 90,000 COGS 450,000 | Gross profit P150,000 P231,000 During 2021, CHARTER LTD. sold goods to MEMBER INC. at the same mark-up on cost that CHARTER LTD. uses for all sales. At December 31, 2021, MEMBER INC. had not paid all of these goods and still held 37.5% of them in inventory. Compute for the original cost of goods in MEMBER INC.'s inventory acquired from Apple.
A subsidiary sold goods costing P1.2 million to its parent for P1.4 million. All of the inventory is held by the parent at year-end. The subsidiary is 80% owned and the parent and subsidiary operate in different tax jurisdictions. The parent pays taxation at 30% and the subsidiary pays taxation at 30%. Calculate any deferred tax asset that arises on the sale of the inventory to the parent. a. P 60,000 c. P48,000 b. P200,000 d. P80,000
Compute for Consolidated Gross ProfitConsolidated Net Income -Parent *
10. During 20x9, PP Corporation recorded sales of inventory costing P500,0000 to SS Company, its wholly owned subsidiary, on the same terms as sales made to third parties. At December 31,20x9, SS held one- fifth of this goods inventory. The following information pertains to PP and SS's sales for 20x9: (see image below) In its 20x9 consolidated income statement, what amount should PP report as cost of sales? * PP P 2,000,000 (800,000) P1.200.000 SS P1,400,000 1700.000) P 700.000 Sales Cost of Sales Gross Profit Your answer
K Company owns 100% of E Company. During the year, Kianapurchased inventory from Elyssa at a mark-up of 20% based on cost.How should the group compute for consolidated cost of sales?a. Cost of Sales of K + Cost of Sales of E– intercompany sales + Realized profit in beginning inventory – Unrealized profit in ending inventory.b. Cost of Sales of K + Cost of Sales of E – intercompany sales – Realized profit in beginning inventory + Unrealized profit in ending inventory.c. Cost of Sales of Kiana + Cost of Sales of Elyssa – Intercompany sales d. Cost of Sales of K + Cost of Sales of E
What is the amount of pre-acquisition earnings on the acquisition date consolidated income statement if the parent acquires 90 percent of the subsidiary’s stock and the following income statement accounts exist at the acquisition date? Parent Subsidiary Sales P250,000 P60,000 Cost of Goods Sold 120,000 12,000 Depreciation Expense 10,000 5,000 Operating Expenses 40,000 8,000 Income Tax Expense 32,000 14,000 2. Using the same information in No. 1, what is the imputed value of a subsidiary if the parent pays P56,000 for 80 percent of the subsidiary’s stock? Use the following information for question 3 and 4: Marksman acquired 100 percent of Tribal Transit for P275,000. At the date of acquisition, Fast Transit…

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