Memphis Inc paid P1200000 in December 2013 for its inventory In December 2014

Memphis inc paid p1200000 in december 2013 for its

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48.Memphis Inc., paid P1,200,000 in December 2013 for its inventory. In December 2014, one half of the inventory wassold for P1,000,000 when the replacement cost of the original inventory was P1,400,000. Ignoring income taxes, whatamount should be shown in the current cost accounting income statement for 2014?A.P500,000B.P400,000C.P300,000D.P200,00049.The Ginebra Company, an SME, set up a defined benefit post-employment plan with effect from 1 January 2014. Inthe first year the expected return on plan assets was P5,000, the actual return on plan assets was P4,000, the currentservice cost was P12,000 and Ginebra’s contributions paid into the plan were P7,500. The entity recognizes allactuarial gains and losses immediately in other comprehensive income.What is the net expense to be recognized in profit or loss for the year ended 31 December 2014, according to section28 of PFRS for SMEs?
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50.On 31 December 2012 Irie Corp., an SME, acquired 30 percent of the ordinary shares that carry voting rights of entityB for P100,000. Irie Corp. incurred transaction costs of P1,000 in acquiring these shares.Irie Corp. has significant influence over entity B. Irie Corp. uses the cost model to account for its investments inassociates.In January 2013 entity B declared and paid a dividend of P20,000 out of profits earned in 2012. No further dividendswere paid in 2013, 2014 or 2015.A published price quotation does not exist for entity B. at 31 December 2012, 2013 and 2014, in accordance withSection 27 of the PFRS for SMEs, management assessed the fair values of its investment in entity B as P102,000,P110,000 and P90,000 respectively. Costs to sell are estimated at P4,000 throughout.Irie Corp. measures its investment in entity B on 31 December 2012, 2013 and 2014 respectively at:-End of Examination -
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