34. The Razel Company owes P15,000,000 on the mortgage of its building to City Bank.The building has a net book value of P20,000,000 and a fair value...
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34. The Razel Company owes P15,000,000 on the mortgage of its building

to City Bank. The building has a net book value of P20,000,000 and a fair value of P18,000,000. When Razel Company file for liquidation, it owed interest of P90,000; when the building was sold for P18,000,000, the interest due on the mortgage is P200,000. What amount will the bank receive if the unsecured creditors received 80% of their claims?


33. The Rafael corporation established its Bulacan branch in January 2018. During its first year of operations, home office shipped to its Bulacan branch merchandise worth P520,000 which included a markup of 15% on cost. Sales on account totaled P1,000,000 while cash sales amounted to P320,000. Bulacan reported operating expenses of P152,000 and ending inventory of P60,000, at billed price. In so far as the home office is concerned, how much is the real net income of Bulacan?


32.The home office bills its Cagayan branch at 125% of cost. During the year 2018, goods costing P150,000 were shipped to the branch. The account "allowance for overvaluation of branch inventory", after adjustment, shows a balance of P14,000 at the end of the year. What is the amount of ending inventory at cost?


31.Silingan Company is experiencing financial difficulty and is negotiating debt restructuring with its creditor to relieve its financial stress. Silingan has a P2,500,000 note payable to Lebakero Bank. The bank accepted an equity swap in Silingan Company in the form of 200,000 ordinary shares quoted at P12 per share. The par value is P10 per share. What amount should be recognized as gain from the debt extinguishment as a result of the "equity swap"?


30.Several years ago Papa corporation acquired 80% of Mama company. Analysis of data relative to this purchase indicates that goodwill of P120,000 was acquired in this purchase. On October 1, 2018, Mama sold to Papa a use car for P64,000 in cash. Mama had originally paid P110,000 for the car. On the day of the sale, the car had a book value of P46,000. Papa estimated the remaining life of the car at 3 years. Papa' s net income from its own operations was P200,000 in 2018 and P150,000 in 2019. Mama's net income in 2018 is P120,000 and P180,000 in 2019. How much is the Non controlling interest in net income of subsidiary in 2018? 

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