KINDLY ANSWER NO. 13 AND 14 THANK YOU

5 For Nos. 13 and 14 Entity A and Entity B incorporated Entity C to manufacture a microchip to be used by the incorporating entities as component for their final product of cellular phones and tablets. The contractual agreement of the incorporating entities provided that the decisions on relevant activities of Entity C will require the unanimous consent of both entities Entity A and Entity B have rights to the assets and obligations for the liabilities, relating to the arrangement. The ordinary shares of Entity C will be owned by Entity A and Entity B in the ration of 60:40. At the end of the first operation of Entity C, the financial statements provided the following data: 2,000,000 4,000,000 Inventory Land Building 6.000.000 2,000,000 B 10,000,000 Accounts payable Note payable Loan payable Share capital Retained earnings Sales revenue 8,000,000 2,000,000 2,000,000 10,000,000 The contractual agreement of Entity A and Entity B also provided for the following concerning the assets and liabilities of Entity C Entity A owns the land and incurs the loan payable of Entity C Entity B owns the building and incurs note payable of Entity C The other assets and liabilities are owned by Entity A and Entity B on the basis of their capital interest in Entity C The sales revenue of Entity C includes sales to Entity A and B in the amount of P 2,000,000 and P 4,000,000 respectively. As of the end of the first year, Entity A and Entity B were able to resell 30% and 60% of the inventory coming from Entity C to third persons 3 2 13. What is the amount of total assets to be reported by Entity A concerning its interest in Entity C? A. 10,800,000 B. 6,000,000 C. 7,200,000 D. 10,000,000 14. What is the amount of sales revenue to be reported by Entity A concerning its interest in Entity C? A. 4,600,000 B. 4,200,000 C. 6,000,000 D. 5,000,000 7