poration owhed sub several years ago at book value (whic years 2020 and 2021, John and Fred John's separate income Fred's net inc 2020. 2021 P300,000 P400,000 80,000 60,000
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- Reyes Corp. owned 70% of the voting common stock of Lee Co. During 2021, Lee sold a parcel of land to Reyes. The land had a book value of $87,000 and was sold to Reyes for $138,000. Lee's reported net income for 2021 was $127,000. Required: Assuming there are no other intra-entity transactions nor excess amortizations, what was the net income attributable to the noncontrolling interest of Lee? Due to the sale of land being an upstream sale, and not sold to an external entity the Gain would be deferred each year.1.Fred Corporation is a 90% owned subsidiary of John Corporation acquired several years ago at book value (which is equal to fair value). For the years 2020 and 2021, John and Fred report the following: John's separate income Fred's net income 2020. 2021 P300,000 P400,000 80,000 60,000 The only intercompany transaction between John and Fred during 2020 and 2021 was the January 8, 2020 sale of land. The land had a book value of P20,000 and was sold intercompany for P30,000, its appraised value at the time of sale. a. The Consolidated net income for 2020 and 2021: 2020 2021 a.P372,000 P460,000 b.P370,000 P460,000 c.P362,000 P454,000 d.P380,000 P460,000On November 8, 2023, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost $62,000 and was sold to Wood for $74,000. For consolidated financial statement reporting purposes, when must the gain on the sale of the land be recognized? O Proportionately over a designated period of years. O No gain may be recognized. O When Wood Co. sells the land to a third party. O As Wood uses the land.
- Samwell Corp. owns 100% of Sandor Corp.’s common stock. On January 2, 2019,Samwell sold to Sandor for P30,000 machinery with a carrying amount ofP22,500. Sandor is depreciating the acquired machinery over a five year life bythe straight-line method. The net adjustments to compute 2019 and 2020 ProfitAttributable to Equity Holders of Parent or CNI Attributable to Controllinginterests before income tax would be an increase (decrease) of: A. 2019 - (P7,500) ; 2020- P1,500B. 2019 - (P7,500) ; 2020- 0C. 2019 - (P6,000) ; 2020- 0D. 2019 - (P6,000) ; 2020- P1,500On January 2 of the current year, Fenton and Myers form the FM LLC. Their contributions to the LLC are as follows: Adjusted Basis From Fenton: Cash Accounts Receivable Inventory From Myers: Land $50,000 -0- 25,000 250,000 Fair Market Value $50,000 90,000 60,000 200,000 FM originally intended to hold the inventory as investment property. Myers held the land as long-term investment property, but FM will use it in its business as a Section 1231 asset. Within 30 days of formation, FM collects the receivables. Two years later, FM sells the inventory contributed by Fenton for $60,000 cash. After three years, FM sells the land for $200,000. How much income does FM recognize from these transactions, and what is its character? Please show all work and explain your calculations. Thank you.Samwell Corp. owns 100% of Sandor Corp.’s common stock. On January 2, 2019, Samwell sold to Sandor for P30,000 machinery with a carrying amount of P22,500. Sandor is depreciating the acquired machinery over a five year life by the straight-line method. The net adjustments to compute 2019 and 2020 Profit Attributable to Equity Holders of Parent before income tax would be an increase (decrease) of: a. 2019 - (P7,500) ; 2020 - 0 b. 2019 - (P6,000) ; 2020 - P1,500 c. 2019 - (P6,000) ; 2020 - 0 d. 2019 - (P7,500) ; 2020 - P1,500
- Goku Corporation is an 80% owns subsidiary of Vegeta Corporation. In 2018, Goku sold land net cost of P30,000 to Vegeta for P50,000. Vegeta held the land for 8 years before selling it in 2019 to Frieza Company, an unrelated entity, for P110,000. The consolidated income statement of Vegeta and its subsidiary in 2019, Goku, will show a gain on the sale of land of: 80,000 60,000 32,000 48,000Par Inc. owns 70% of Sent Inc's voting shares. Sent purchased land for 560,000 and then sold it to Par on June 10, 2019, for $90,000. Which of the following statements are TRUE regarding the worksheet cosolidation entries needed on December 31. 2019 and 2020 to remove the effects of the Intercompany sale of land? OThe December 31. 2019, worksheet consolidation entry includes a debit to Gain on Sale of Land of $30,000. The December 31, 2019. worksheet consolidation entry includes a credit Land of $30,000. The December 31, 2020, worksheet consolidation entry includes a debit to Investment in Sent of $21.000. The December 31, 2020, worksheet consolidation entry includes a debit to Land of $9.000. OThe December 31, 2020, worksheet consolidation entry includes a credit to Gain on Sale of Land of $30,000.Help me please
- 1.Stevens owns 60% of David. In 2020 Stevens has net income of $80,000 and David has net income of $60,000. There is also $4,000 of annual excess amortization associated with David’s acquisition date equipment plus David had a $3,000 gain on intercompany sale of land to Stevens. Stevens had a $5,000 gain on an intercompany sale of land to David. How much is noncontrolling interest in subsidiary net income 2.In 2019 a 90% owned subsidiary had $60,000 of unrealized gains on intercompany sales to its parent. In 2020 the subsidiary sold $200,000 of goods to its parent and had $30,000 of unrealized gains. In 2020 parent reports Cost of Goods Sold of $4,000,000 and sub reports Cost of Goods Sold of $1,000,000. How much is Consolidated Cost of Goods Sold.PHONE acquired 65% of CHARGER’s voting ordinary shares for P468,000, P108,000 above the net assets of CHARGER’s book value on January 2, 2021. The difference attributable to an equipment which is amortized over 10 years. What is the effect of the purchase difference on the 2023 net income attributable to owners of the parent?Mo Burrow owns a 25% interest in Bengal LLC. On December 31, 2021, Mo Burrow's basis in the LLC is $40,000 and its fair market value is $70,000. On that date, the LLC distributes $25,000 in cash and a parcel of land to Mo Burrow that s worth $30,000 but in which the LLC has a basis of $13,000. a. What is the gain or loss recognized by Mo Burrow and Bengal LLC on this distribution? b. What is Mo Burrow's basis in the LLC after the distribution?