Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Selected information from the separate and consolidated statements of financial position and statements of comprehensive income of Pau de Arco, Inc. and its subsidiary, Kati
Selected information from the separate and consolidated statements of financial position and statements of comprehensive income of Pau de Arco, Inc. and its subsidiary, Kati Alis Co., as of December 31, 20X9, and for the year then ended is as follows: (see image below)
REQUIRED: In Pau de Arco's December 31, 20X9, consolidated Statement of financial position, the carrying amount of the inventory that Kati Alis purchased from Pau de Arco.
Pau de Arco Kati Alis Consolidated Statement of financial position accounts Accounts receivable........ P 26,000 P19,000 P 42,000 30,000 25,000 50,000 Investment in Kati Alis 67,000 Goodwill... III 30,000 Noncontrolling interest.. 10,000 Stockholders' equity.... 154,000 50,000 154,000 Statement of comprehensive income accounts Revenues... P200,000 P140,000 P300,000 Cost of goods sold. 150,000 110,000 225,000 Gross profit...4..4. 50,000 30,000 75,000 Equity in earnings of Kati Alis. P9,000 Net income. P36,000 P20,000 P36,000 Additional information During 20X9, Pau de Arco sold goods to Kati Alis at the same markup on cost that Pau de Arco uses for all sales. At December 31, 20X9, Kati Alis had not paid for all of these goods and still held 50% of them in inventory. Pau de Arco acquired its interest in Kati Alis five years earlier (as of December 31, 20X9.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started