Question
q31 ) P CO owns a 90% interest in S Co, purchased at a time when the book values of S recorded assets and liabilities
q31 )
P CO owns a 90% interest in S Co, purchased at a time when the book values of S recorded assets and liabilities were equal to fair values. During 2014, P sold merchandise to S cost 40,000 for $32,000 . At December 31, 2014, 75% of this merchandise sold to third party .Separate incomes for P&S are summarized as follows:
P S
Sales 900,000 200,000
Cost of sales 400,000 100,000
Gross profit 500,000 100,000
Operating expenses 200,000 80,000
Separate income 300,000 20,000
What is amount of income from s reported in P income statement ?
Select one:
a. 16,200
b. 19,800
c. 20,000
d. 18,000
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q27)
on 1/1/2019 X CO acquired 80% of Y common stock for $200,000 in the same day the Y net assets was $ 140,000 ,in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 Y reported income $50,000,declared dividend $30,000,X using cost methods what is investment balance on 31/12/2019
Select one:
a. 150,000
b. 177,000
c. 200,000
d. 166,000
__________________
q24)
On 1/1/2019,X Co purchased a 30% interest in Y Co for $340,000.Y reported net income of $100,000 for 2019 and declared and paid a dividend of $10,000.
X co using the Cost method. In its 31/12/ 2019,balance sheet
what amount should X report as its investment in Y?
Select one:
a. 223,000
b. 277,000
c. 340,000
d. 250,000
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