69 what is the consolidated sales revenue for the

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69. What is the consolidated sales revenue for the year ended December 31, 2020? A. 2,600,000 B. 2,320,000 C. 3,000,000 D. 2,720,000 70. What is the consolidated gross profit for the year ended December 31, 2020? A. 1,120,000 B. 1,048,000 C. 1,028,000 D. 1,152,000 71. What is the noncontrolling interest in net income for the year ended December 31, 2020? A. 100,800 B. 59,200 C. 51,200 D. 88,000 72. What is the consolidated net income attributable to parent’s shareholders for the year ended December 31, 2020? A. 766,800 B. 596,800 C. 606,800 D. 626,800
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Page 25 Numbers 73, 74, 75 and 76 (Consolidated Statements-Intercompany gain or loss on disposal) On January 1, 2019, Entity A acquired 80% of outstanding ordinary shares of Entity B at a gain on bargain purchase of P180,000. The following intercompany transactions occurred for between the two entities: On January 1, 2019, Entity B sold a land to Entity A with a cost of P1,000,000 at a selling price of P1,100,000. The land was eventually sold by Entity A to third persons during 2020. On January 1, 2019, Entity A sold a white machinery to Entity B with a cost of P200,000 and accumulated depreciation of P40,000 at a selling price of P180,000. The machinery is already 4 years old at the date of sale. The residual value of white machinery is immaterial. On July 1, 2020, Entity B sold a black machinery to Entity A at with a cost of P270,000 and accumulated depreciation of P180,000 at a selling price of P60,000. The machinery is already 6 years old at the date of sale. The residual value of black machinery is immaterial. For the year ended December 31, 2020, Entity A reported net income of P800,000 while Entity B reported net income of P500,000 and distributed dividends of P150,000. Entity A accounted for its inventory in Entity B using cost method in its separate financial statements. 73. What is the consolidated depreciation expense of machinery for 2020? A. 40,000 B. 55,000 C. 61,667 D. 42,333 74. What is the consolidated carrying amount of machinery on December 31, 2020? A. 225,000 B. 215,000 C. 200,000 D. 210,000 75. What is the noncontrolling interest in net income for 2020? A. 124,000 B. 105,000 C. 125,000 D. 104,000 76. What is the consolidated net income attributable to parent shareholders for 2020? A. 1,538,750 B. 1,518,750 C. 1,398,750 D. 1,418,750
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Page 26 Separate Financial Statements - Cost Method and Fair Value Model or Equity Method Numbers 77, 78, 79 and 80 On January 1, 2020, Entity A acquired 90% of outstanding ordinary shares of Entity B at a price of P900,000. Entity A paid P20,000 costs related to acquisition of shares. At the acquisition date, the net assets of Entity B were reported at P950,000. All the assets of Entity B are properly valued except for a machinery which is undervalued by P150,000. The machinery has a remaining useful life of 5 years. For the year ended December 31, 2020, Entity B reported net income of P200,000 and declared dividends in the amount of P30,000. The fair value of Investment in Entity B on December 31, 2020 is P1,000,000 while the cost of disposal is 5%. Entity A voluntarily prepared its separate financial statements. 77. If Entity A elects cost method to account its Investment in Entity B in its separate financial statements, what is the carrying amount of the Investment in Entity B on December 31, 2020?
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