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On January 1, 2019, NANA Co. sells 60% out of its 80% interest in SASHA, Inc. for P100,000. NANA's remaining 20% interest in SASHA has
On January 1, 2019, NANA Co. sells 60% out of its 80% interest in SASHA, Inc. for P100,000. NANA's remaining 20% interest in SASHA has a fair value of P25,000. This gives NANA significant influence over SASHA. The statements of financial position immediately before the sale are shown below: Statements of financial position As at January 1, 2019 NANA CO. SASHA, Inc. Consolidated 57,000 22,000 15,000 80,000 97,000 120,000 ASSETS Cash Accounts receivable Inventory Investment in subsidiary Equipment Accumulated depreciation Goodwill TOTAL ASSETS 23,000 75,000 105,000 75,000 200,000 (60,000) 50,000 (20,000) 260,000 (84,000) 3,000 476,000 418,000 124,000 30,000 LIABILITIES AND EQUITY Accounts payable Bonds payable Total liabilities Share capital Share premium Retained earnings Non-controlling interest Total equity TOTAL LIAB. & EQTY. 43,000 30,000 73,000 170,000 65,000 110,000 30,000 50,000 73,000 30,000 103,000 170,000 65,000 118,000 20,000 373,000 476,000 44,000 345,000 418,000 94,000 124,000 How much is the gain (loss) on the disposal? a.38,000 b.42,000 c.62,000 d.78,000
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