Question
On January 1, 1993, Jacky Company (Parent' purchased 8,000 of the 10,000 ordinary shares of Jack Jack Company (Subsidiary) at underlying carrying amount. Jacky and
On January 1, 1993, Jacky Company (Parent' purchased 8,000 of the 10,000 ordinary shares of Jack Jack Company (Subsidiary) at underlying carrying amount. Jacky and Jack Jack's retained earnings on that date were P1,000,000 and P200,000 respectively. During 2021, the following data were ascertained:
a. Consolidated net income was P400,000.
b. Jacky Co. declared dividends of P100,000.
c. Jack Jack Co. had net income of P30,000 and declared dividends of P40,000.
d. There were no other intercompany transactions.
What is the amount of consolidated retained earnings at December 31, 2021?
A. 1.532,000 B. 1.300.000 C. 1.540.000 D. 1.284.000
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
