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refer to the image Accounting for business combinations On January 1, 2015, P Corporation acquired 90% of S Company. P uses the cost method to
refer to the image Accounting for business combinations
On January 1, 2015, P Corporation acquired 90% of S Company. P uses the cost method to account for its investment in 5 Company. Analysis of data relative to this purchase indicates that goodwill of P70,000 was acquired in this purchase. The goodwill is unimpaired. On July 1, 2018, 5 sold a patent to P. The sales prices were P140,000. S Company's book value was P70,000. 5 Company estimates that the patent has a life of 5 years and no salvage value. it will use straight line depreciation. For 2018, P Corporation's net income is P560,000 from its own operations. 5 Company had net income of P140,000. The 2018 net income attributable to equity holders of P Corporation is? a. P631000 b. P629300 :3. P623,UDD d. P616,000Step by Step Solution
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