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Consolidated financial statement On January 1, 2017 Pulpy Company purchased 80% stocks of Suzzy Company for $820,000. The fair value of the non-controlling interest is

Consolidated financial statement

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On January 1, 2017 Pulpy Company purchased 80% stocks of Suzzy Company for $820,000. The fair value of the non-controlling interest is assessed at $220,003 while the proportionate share basis amounted to $200,000. The excess of total value of subsidiary over its book value of $950,000 is attributable to goodwill and equipment with 5 years remaining life. On march 3, 2017, Pulpy sold merchandise costing 500,000 to Felbie Company for 750,000. 0n the same day, Pulpy sold merchandise to Suzzy costing 280,000 for 350,000. On the other hand. Pulpy Company paid $400,000 for the purchase of merchandise from Suuy on June 30, 2017 with the latter imposing mark up of 25%. In the perspective of Pulpy company, the remaining inventory from intercompany transaction as of year- end amounted to as due to sale of such merchandise to outside party for 150,003. While the records of Suzzy shows that the x of the inventory from the intercompany transaction were sold to unrelated for 250,000. The following shows the net income and dividends declared by both company in 2017. Pulpy Company Suzzy company Net income 386,000 115,000 Dividends 50.000 20.000 The shareholder's equity of Pulpy is compose of common stocks, additional paid-in-capital and retained earnings of $1,750,000, $250,000, $2,000,000 respectively. 1. How much is the fair value net asset of the subsidiary? a) 500,000 C) 1.000.000 0) 1,200,000 d} 950.\") 2. How much is the amount of goodwill and amortization of equipment? a) 10,000 and (40000) c} 50,000 and (40,000) 0) 10,000 and (50,001)) d} 40,003 and (10,000] 3. how much is the amount if net income of the parent from own operations? a) 386,000 c) 365,000 b) 370.000 d} 360.000 0. what is the downstream and upstream mark up on sales? a) 25 and 25 c} 20 and 25 b) 20 and 20 d} 25 and 20 S. how much is the downstream and upstream unrealized prot in ending inventory? a) (350,000) and (150,000) c) l70,000)and[70,000) b) (125,000) and (25,000} d] (35.000}and(35,000) 6. how much is the consolidated net income? a) 90,000 C} 425.000 0) 335,000 d) 450.000 7. how much is the net income attributable to parent in the consolidated net income? 3) 335.000 c) 425,000 1:) 407.000 d] 450.000 8. how much is the net income attributable to non-controlling interest? a) 18,000 c} 72,000 b) 25.000 d) 245.000 9. how much is the balance of the non-controlling interest in net asset of subsidiary? a) 220,000 c} 234,000 b) 238,000 d) 407.000 10. how much is the consolidated retained ea mlngs? 3) 2,000,000 b) 2,350,000 :3 2,357,000 d) 2,407,000

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