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The next two items are based on the following information. PARENT CORPORATION regularly sells merchandise to its 80%-owned subsidiary, DIANCIN ENTERPRISES. In 2019, Parent sold
The next two items are based on the following information. PARENT CORPORATION regularly sells merchandise to its 80%-owned subsidiary, DIANCIN ENTERPRISES. In 2019, Parent sold merchandise that cost P64,000 to DIANCIN for P80,000. Half of this merchandise remained in Diancin's December 31, 2019 inventory. During 2020, Parent sold merchandise that cost P100,000 to Diancin for P125,000. Forty percent of this merchandise inventory remained in Diancin's December 31, 2020 inventory. Selected income statement information for the two affiliates for the year 2020 is as follows: Parent Company Diancin Enterprises Sales revenue P 600,000 P 300,000 Cost of goods sold 480,000 250,000 Gross profit 120,000 50,000 OPEX 40,000 20,000 Net Income P 80.000 P 30,000 Consolidated sales revenue and cost of good sold for 2020 are
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