QUESTION 30 Phips Co. purchases 100 percent of Sips Company on January 1, 20x2, when Phips' retained earnings balance is $320,000 and Sips' RE balance is $120,000. During 20X2, Sips reports $20,000 of net income and declares $8,000 of dividends. Phips reports $125,000 of separate operating earnings plus $20,000 of equity-method income from its 100 percent interest in Sips: Phips declares dividends of $35,000 What is Phips' total net income including the income from Sips in its income statement for the year ended December 31, 20x2? $145,000 $125,000 $120,000 $110,000 ck Save and Submit to save and submit. Click Save All Answers to save all answers, Save Al Answer QUESTION 29 On January 1, 20X8, Gregory Corporation acquired 90 percent of Nova Company's voting stock, at underlying book value. The fair value of Nova's stock was equal to its books value. Gregory uses the cost method in accounting for its ownership of Nova. The income statement of Gregory and Nova for the year 20X8 are given below. Nova Corp 120,000 Sales Revenge Dividend Revenue Total Revenue Less: Expenses Net Income Gregory Corp 200,000 +9,000 209,000 - 139,000 70,000 120,000 - 90,000 30,000 Nova paid a dividend of $10,000 for the year 20x8. 1 Gregory decides to adopt the EQUITY METHOD, then what amount will be reported by Gregory as the consolidated net income in the consolidated income statement? $100,000 $109,000 $91,000 $329,000 QUESTION 30 QUESTION 28 P Co. buys 90% shares in S Co. on Jan 20X1. On the date of acquisition, the equity of P and were as follows: Common Stock Retained Earning 800,000 517.500 200,000 155.000 What amount of Non-controlling interest will be reported in the consolidated balance sheet? $355,000 SO $35,500 $1017.500 QUESTION 28 P Co. buys 90% shares in S Co. on Jan 20X1. On the date of acquisition, the equity of P and S were as follows: Common Stock Retained Earnings 500,000 517.500 200.000 155,000 What amount of Non-controlling interest will be reported in the consolidated balance sheet? $355,000 $0 $35,500 $1017,500