1 Basketball co. wholly owns volleyabll Co. During the year, Basketball purchased inventory from Volleyball.

Volleyball has
How should the group compute the consolidated cost of sales?
a cost of sales of basketball plus cost of sales of volleyball
b cost of sales of basketball plus cost of sales of volleyball minus intercompany sales
c cost of sales of basketball plus cost of sales of volleyball minus intercompany sales plus unrealized profits in ending
d cost of sales of basketball plus cost of sales of volleyball minus intercompany sales minus unrealized profits in end

16 How should the group compute the consolidated sales?

a sales of basketball plus sales of volleyball
b sales of basketball plus sales of volleyball minus the intercompany sale
c sales of basketball plus sales of volleyball plus the intercompany sale
d sales of basketball plus sales of volleyball minus the unrealized gross profit from intercompany sale

2 Dividends declared by a subsidiary are eliminated against dividend income recorded by the parent under the --
a Partial equity method
b equity method
c cost method
d equity and partial equity methods

3 In years subsequent to the upstream intercompany sale of non-depreciable assets which resulted to loss, the necessary
a Non-controlling interest and retained earnings - parent, and credit the non-depreciable asset
b Retained eaernings account and credit the non-depreciable asset
c Non-depreciable asset, and credit the non-controlling interest and investment in subsidiary accounts
d Non-depreciable asset, and credit the non-controlling interest and retained earnings accounts

4 To recognized the intercompany loss on sale of machinery for the current reporting period, through depreciation, the elim
a Depreciation expense
b Accumulated depreciation
c Retained earnings
d Non-controlling interest

5 Gain or loss resulting from an intercompany sale of equipment between a parent and a subsidiary is --
a recognized in the consolidated statements in the year of the sale
b consolidated to be realized over the remaining useful life if the equipment as an adjustment to depreciation in the c
c considered to be unrealized in the consolidated statement until the equipment is sold to a third party
d amortized over a period not less than 2 years and not greater than 40 years

6 in 20y5 an intercompany inventory transfer above cost occured, in 20y6, all this inventory was resold to an outside party
a cost of sales
b intercompany cost of sales
c intercompany sales
d ending inventory

7 parent sold land to its subsidiary for a gain in 20x4. the subsidiary sold the land externally for a gain in 20x7. which of the
a only the subsidiary company will report a gain in 20x7
b a gain will be reported on the consolidated income statements in 20x7
c no gain will be reported on the 20y0 consolidated income statement
d only the parent company will report a gain in 20x4
 8 The consolidated inventory presented in the financial statement should be reduced by any realized mark up on intercomp
1
0

9 the method that increase or decrease the investment in subsidiary stock for the results of subsidiary's operation is--
a the equity method
b the cost method
c the purchase method
d the pooling of interest method

10
if a gain in an intercompany transaction is attributable to a partially owned subsidiary, workng paper eliminations (in journ
subsequent to the period of the intercompany transaction will include a debit to Non-Controllin interest in Net Assets of S
a a sale of plant asset
b a sale of merchandise
c an acquisition of outstanding bonds in the open market
d a sale of intangible asset

when preparing consolidated financial statement workpapers, unrealized intercompany gains, as a result of equipment o
11 proportionately by percent of ownership between parent and NCI only when the selling affiliate is --
a the parent and the subsidiary is less than wholly owned
b a wholly owned subsidiary
c the subsidiary and the subsidiary is less than wholly owned
d the parent of a wholly owned subsidiary

12 the method of accounting for investment in subsidiary that is appropriate for the acquisition method of combination is--
a cost method
b market value method
c equity method
d pooling method

13 the consolidated procedures for intercompany sales are similar for upstream and downstream sales
a if merchandise is transferred at cost
b under a periodic inventory system but not under a perpetual inventory system
c if the merchandise is immediately sold to ourside parties
d when the subsidiary is 100% owned

14 under the cost method, the investment account is reduced when there is a
a liquidating dividend
b the subsidiary declares a cash dividend
c the subsidiary incurs a net loss
d none of these

strickland company sells inventory to its parent, carter company, at a profit during 20x4. with regards to the intercompany
15 choices would be a debit entry in the consolidated worksheet for 20x4?
a retained earnings
b cost of goods sold https://www.studocu.com/ph/document/central-philippine-uni
c inventory
d investment in strickland company
addional paid-in-capital
17 under the cost method of accounting ffor investment, depreciation and amortization of the allocated excess between the
of a purchase subsidiary's identifiable net assets is debited to the
a subsidiary's expense accounts
b parent company expense accounts
c subsidiary's retained earnings acounts
d parent company's investment account

the working paper elimination (in journal entry format) for a second year of intercompany sales made at a mark-up over s
18 owned subsidiary to the parent company includes
a debit to retained earnigns - subsidiary
b credit to noncontrolling interest in net assets of subsidiary
c credit to cost of goods sold - subsidiary
d none of the choices

19 which of the following accounts would not require reconciliation of adjustment to a reciprocal balance prior to beginning t
a intercompany receivables
b intercomopany interest income
c intercompany sales
d intercompany management fee income

20
Fiver years ago, an intercompany gain on sale was recorded for an equipment, which by that time had an estimated life o
an upstream sale of equipment (wholly owned subsidiary), to recognized intercompany gain on sale for the past 5 years
the following entry, except
a credit retained earnings
b credit noncontrolling interest
c debit accumulated depreciation
d credit depreciation expense

21 in a upstream sale where parent owns all of the subsidiary's outstanding shares. the eliminating entry to recognized the r
a cost of sales
b retained earnings
c non-controlling interest
d inventory

22 the working paper entry to record the share of non controlling interest in the subsidiary's net profit is a
a debit to noncontrolling interest
b credit to noncontrolling interest
c credit to income attributable to noncontrolling interest
d any of the choices

23 a parent and its 80-percent owned subsidiary have made several intercompany sales of noncurrent assets during the pa
income assigned to the non-controlling interest for the second year should include the non-controlling interest's share of
a unrealized in the second year from upstream sales made in the second year
b realized in the second year from downstream sales made in both years
c realized in the second year from upstream sales made in both years
d both realized and unrealized from upstream sales made in the second year

24 in all cases, if an acquisition resulted to a goodwill, the total consolidated assets under full goodwill is higher than under p
 a 1
b 0

24 In all cases, if an acquisiiton resulted to a goodwill, the total consolidated assets under full goodwill is higher than under
a 1.00
b 0.00

25 An investor adjusts the investment account for the amortization of any difference between cost and book value under the
a Cost method
b Complete equity method https://quizlet.com/120750272/adv-acct-ch-4-practice-mc-fla
c Partial equity method
d Complete and partial equity method

26 If subsidiary's net assets is overvalued at date of acquisition, its net income, compared to its net income for consolidation
I - overstated
II - understated
a I only
b II only
c neither I nor II
d both I and II

27 Five years ago, an intercompany gain on sale was recorded for an equipment, which by that time had an estimated life o
upstream sale of equipment (partially owned subsidiary), the recognized intercompany gain on sale for the past 5 years a
adjusted in the current year's eliminating entries without a credit to
a Retained earnings
b Noncontrolling interest
c Accumulated depreciation
d Depreciation expense

28 The investment in subsidiary account is not debited in which working paper entries?
a Adjustment of under valuation of subsidiary's net assets
b Elimination the dividend received under equity method
c Recognition of bargain purchase gain on acquisition
d Elimination of subsidiary's deficit

29 In 20y6, Puzco resold for 70,000 inventory that ias had acquired from its 100 50,000. Suzco's cost was $36,000. In cons
a Intercompany Cost of Sales
b None of the choices
c Intercompany Sales
d Inventory
e Non-controlling interest

30 In a downstream sale where Parent owns all of the subsidiary's outstanding shares. The eliminating entry to adjust the e
a Cost of sales
b Retained earnings Cost of sales
c Non-controlling interest Inventory, end - subs
d Inventory
entory from Volleyball. Volleyball has marked-up the goods at 20% above cost

sales plus unrealized profits in ending inventory and minus realized profit in beginning inventory
sales minus unrealized profits in ending inventory and plus realized profit in beginning inventory

m intercompany sale

by the parent under the --

which resulted to loss, the necessary consolidated workpaper entry under the cost method is to debit the
eciable asset

n subsidiary accounts
nings accounts

period, through depreciation, the eliminating entry should include a credit a

d a subsidiary is --

n adjustment to depreciation in the consolidated statement

s sold to a third party

ntory was resold to an outside party. which of the following accounts would require adjustment or elimination in consolidation at 12/31/20y6

rnally for a gain in 20x7. which of the following statements is not true?
by any realized mark up on intercompany sale of inventory

lts of subsidiary's operation is--

y, workng paper eliminations (in journal entry format) for accounting periods
Controllin interest in Net Assets of Subsidiary unless the gain arose from --

ny gains, as a result of equipment or inventory sales by affiliates, are allocated

ng affiliate is --

uisition method of combination is--

wnstream sales

0x4. with regards to the intercompany sales, which of the following

m/ph/document/central-philippine-university/accountancy/practical/theories-chapter-4/10168314/view
of the allocated excess between the fair values and book values

pany sales made at a mark-up over subsidiary cost by a partially

ciprocal balance prior to beginning the consolidation process?

h by that time had an estimated life of 15 yeears. if such sale is

ny gain on sale for the past 5 years and the current shall include

eliminating entry to recognized the realized intercompany gross profit includes a debit to -

ry's net profit is a

s of noncurrent assets during the past two years. the amount of

he non-controlling interest's share of gains --

er full goodwill is higher than under partial goodwill

 er full goodwill is higher than under partial goodwill.

ween cost and book value under the -

50272/adv-acct-ch-4-practice-mc-flash-cards/

ed to its net income for consolidation purposes, is -

h by that time had an estimated life of 15 years, if such sale is an

ny gain on sale for the past 5 years and the current year shall be

. Suzco's cost was $36,000. In consolidation at the end of 20y6, which of the following accounts is debited on the worksheet?

The eliminating entry to adjust the ending inventory includes a credit to -

xxx
xxx
in consolidation at 12/31/20y6
n the worksheet?
32 The retained earnings of the parent company and subsidiary are presented below:
1/1/2013 12/31/2019
Retained earnings of parent 200,000.00 3,000,000.00
Retained earnings of subsidiary 30,000.00 600,000.00

As of acquisition date, January 1, 2013, the subsidiary's equipment is undervalued by 20,000. On the same date, the equ
Moreover, parent company declared dividends of Php20,000, Php50,000, Php100,000 in 2014, 2015, and 2017, respect
80% controlling interest.

Compute the consolidated retained earnings, December 31, 2019.

a. Php 3,570,000
b. Php 3,740,000
c. Php 3,444,800
d. Php 3,170,000

33 SS inc., a wholly owned subsidiary of PP Inc., began operations on January 1, 20x4. The following information is from th
PP SS
Sales 150,000.00 90,000.00
Cost of goods sold (105,000.00) (81,000.00)
Gross profit 45,000.00 9,000.00
Depreciation (12,000.00) (3,000.00)
Other expenses (18,000.00) (4,500.00)
Income from operations 15,000.00 1,500.00
Gain on sale of equipment to SS 3,600.00 0.00
Income before taxes 33,600.00 3,000.00

Equipment purchased by SS from PP for Php10,800 on January 1, 20x4, is depreciated using the straight-line method o
depreciation expense in PP's 20x4 consolidated income statement?
a. Php 15,000
b. Php 14,100 PP 12,000.00
c. Php 13,200 SS 3,000.00
d. Php 12,300 Realized gain (2,700.00)
12,300.00
34 On January 2, 2013, Polo Corporation purchase 80% of Seed Company's common stock for Php75,600. Php3,500 of the
depreciable with an economic life of ten years. On the date of acquisition, Seed reported common stock outstanding of P
Polo reported common stock outstanding of Php122,500 and retained earnings of Php182,000.
On December 31, 2013, Seed reported CI of Php12,250 and paid dividends of Php5,250, Polo reported CI from its sepa
Goodwill had been impaired and should be reported at Php700 on December 31, 2013.

What is the Consolidated Comprehensive income on December 31, 2014?

a. Php 41,387.50
b. Php 41,300.00
 c. Php 44,100.00
d. Php 43,400.00

36 On January 1, 20x4, Price Company acquired at 80% interest in the common stock of Smith Company on the open mark
Price Company purchased new equipment for Php7,250 from Smith Company. The equipment cost Php4,500 and had a

During 20x6, Price Company had merchandise sales to Smith Company of Php50,000; the merchandise was priced at 2
Company Php8,750 on open account and had 20% of this merchandise in inventory at December 31, 20x6. At the begin
purchased in the previous period from Price Company.

Assume that Smith Company reports net income of Php20,000 for the year ended December 31, 20x6.

Calculate the amount of non-controlling interest to be deducted from consolidated income in the consolidated income sta
a. Php 4,010
b. Php 4,110
c. Php 4,210
d. None of the choices

38 Popo Corporation purchased 95% of the stock of Sotto Company on January 2012. On that date, the book value of Sotto
purchase, Popo recognized Php21,000 of goodwill. During 2012, Sotto sold inventory to Popo. On December 31, 2012, S
December 31, 2013, all of the inventory left on Popo's books had been sold to outside parties. During 2013, Popo sold in
books at the end of 2013. For 2013, Popo reported operating income of Php 175,000, and Sotto reported CI of Php126,0
a. Php 292,775
b. Php 291,550
c. Php 291,725
d. Php 299,250

40 Pepsi Corporation purchased 70% of Sarsi Company's voting stock on May 18, 2009, at underlying book value. The com
Year Purchased by Purchase price Sold to Sales Price
2012 Sarsi 42,000.00 Pepsi 63,000.00
2013 Sarsi 31,500.00 Pepsi 47,250.00
2013 Pepsi 49,000.00 Sarsi 98,000.00

Pepsi reported operating income (exclluding dividend income) of Php56,000 and Php77,000 in 2013 and 2013, respectiv
P31,500 and Php29,750 in 2012 and 2013, respectively.

What is the amount of consolidated cost of goods sold for 2013?

a. Php 63,000
b. Php 64,750
c. Php 64,925
 d. Php 63,175

41 Stroud Corporation is an 80% owned subsidiary of Pennie, Inc. acquired by Pennie several years ago. On January 1, 20
Stroud for Php27,000. Stroud resold the land to an unrelated party for Php30,000 on September 26, 20x5.

The land will be included in the December 31, 20x4 consolidated balance sheet of Pennie, Inc. and Subsidiary at -

a. Php 14,400
b. Php 18,000
c. Php 21,600
d. Php 27,000

42 Patton Corporation acquired 60% interest in Solis Company on January 1, 2013 for Php126,000, when Solis's net assets
Patton sold inventory items that cost Php210,000 to Solis for Php280,000, and Solis' inventory at December 31, 2013 inc
separate income from its own operations (excluding invetment income) of Php105,000, and Solis reported a net loss of P
for Patton Corporation and Subsidiary for 2013 is -
a. Php 63,000
b. Php 35,000
c. Php 56,000
d. Php 91,000

43 Gentry acquired 100% of Gaspard Farms on January 5, 20x3. During 20x3, Gentry sold Gaspard Farms for Php187,500
owned 12% of the goods at the end of the year. In 20x4, Gentry sold goods with a cost of Php240,000 to Gaspard Farms
goods at year-end. For 20x4, cost of goods sold was Php360,000 for Gaspard Farms and Php1,620,000 for Gentry. Wha
a. Php 1,980,000
b. Php 1,978,800
c. Php 1,686,000
d. Php 1,678,800
e. 1,687,500

44 On January 1, 2015, P Company purchased 80% investment in S Company. The acquisition cost was equal to P equity i
retained earnings of Php500,000 and Php100,000 respectively. During 2015
(1) P had net income of Php250,000 which included dividend income from S, and declared dividends of Php50,000;
(2) S had net income of Php40,000 and declared dividends of Php20,000; and
(3) There were no other intercompany transactions between the parent and subsidiary

On December 31, 2015, the consolidated retained earnings should be -

a. Php 700,000
b. Php 716,000
c. Php 816,000
d. Php 820,000

45 Puno Corporation owned 90% interest in a purchased subsidiary. Salas Company which was accounted for by the cost m
 Salas had a CI of Php42,000. Salas declared and paid a Php14,000 dividend during the year 2013. There were no differ
identifiable net assets on the date of the business combination, and there was no goodwill in the business combination. W
for year 2013?
a. Php 80,150
b. Php 75,950
c. Php 88,500
d. Php 113,750 or Php 713,750 di malinaw pic ahahah

49 On January 2, 2013, Pascual Corporation purchased 80% of Suazon Company's Php10 par common stock for Php341,2
Php350,000. The fair value of Suazon's indentifiable assets and liabilities were the same as their carrying amounts exce
excess of the carrying amount. For the year ended December 31, 2013, Suazon had CI of Php66,500 and paid cash divi
consolidated statement of financial position, non-controlling interest (NCI) should be reported at-
Php85,312.50
Php82,600
Php73,850
Php89,162.50
 ed by 20,000. On the same date, the equipment has a 10 year useful life.
00,000 in 2014, 2015, and 2017, respectively. The parent company has an

0x4. The following information is from the condensed 20x4 income statements of PP and SS.

reciated using the straight-line method over four years. What amount should be reported as

12,000.00
3,000.00
(900.00)
14,100.00
mon stock for Php75,600. Php3,500 of the excess is attributed to goodwill and the balance to a
reported common stock outstanding of Php28,000 and retained earnings of Php49,000, and
of Php182,000.
Php5,250, Polo reported CI from its separate operations of Php33,250 and paid dividends of Php16,100.
ock of Smith Company on the open market for Php 375,000, the book value at that date. On January 1, 20x5,
The equipment cost Php4,500 and had an estimated life of five years as of January 1, 20x5.

50,000; the merchandise was priced at 25% above Price Company's cost. Smith Company still owes Price
tory at December 31, 20x6. At the beginning of 20x6, Smith Company had an inventory Php 12,500 of merchandise

ed December 31, 20x6.

ed income in the consolidated income statement for the year ended December 31, 20x6.

12. On that date, the book value of Sotto's net assets approximated fair value. As a result of the
ntory to Popo. On December 31, 2012, Sotto had unrealized profits on its books of Php3,500. By
utside parties. During 2013, Popo sold inventory to Sotto and had Php 5,250 of unrealized profits left on its
5,000, and Sotto reported CI of Php126,000. What is the consolidated CI attributable to parent for 2013?

2009, at underlying book value. The companies reported the following data with respect to
Unsold at End of Year
15,750.00
10,500.00
38,500.00

d Php77,000 in 2013 and 2013, respectivveely. Sarsi reported comprehensive income (CI) of
nie several years ago. On January 1, 20x4, Pennie sold land with a book value of Php18,000 to
0 on September 26, 20x5.

of Pennie, Inc. and Subsidiary at -

for Php126,000, when Solis's net assets had a book value and fair value of Php210,000. During 2013
Solis' inventory at December 31, 2013 included one-fourth of this merchandise. Patton reported
05,000, and Solis reported a net loss of Php52,500 for 2013. Consolidated comprehensive income

ntry sold Gaspard Farms for Php187,500 goods which had cost Php127,500. Gaspard Farms still
a cost of Php240,000 to Gaspard Farms for Php300,000 and Gaspard Farms still owned 10% of the
arms and Php1,620,000 for Gentry. What was the consolidated cost of goods sold for 20x4?

e acquisition cost was equal to P equity in S net assets at that date. On January 2015, P and S had

d declared dividends of Php50,000;

ny which was accounted for by the cost method. During the year 2013, Puno had CI, of Php50,750, and
uring the year 2013. There were no difference between the current fair values and book values of Salas
o goodwill in the business combination. What is the consolidatd CI of Puno Corporation and subsidiary

s Php10 par common stock for Php341,250. On this date, the book value of Suazon's net assets was
he same as their carrying amounts except for plant assets (10 year life), which were Php35,000 in
had CI of Php66,500 and paid cash dividends totalling Php43,750. In the December 31, 2013
d be reported at-
 The income statement of Abakada incorporated and Egaha Company are shown below:
Abakada Egaha
Sales 2,000,000.00 500,000.00
Cost of sales (1,200,000.00) (300,000.00)
Gross profit 800,000.00 200,000.00
Operating expenses (640,000.00) (160,000.00)
Operating income 160,000.00 40,000.00
Other income, includes dividend income 32,000.00 8,000.00
Net gain or loss on sale of fixed assets (19,000.00) 5,000.00
Net income 173,000.00 53,000.00

Abakada incorporated sold inventories to Egaha Company for Php160,000 with 20% gross profit. Egaha sold 80% of the
Last year, Egaha also purchased the same goods from Abakada and sold 25% of it during the current year. Moreover, Eg
plus 10% mark-up, 60% of which were sold during the year. Abakada owns 70% of Egana's outstanding ordinary shares.

31 Based on the income statement above, answer the following four (4) independent questions:

How much is the net income attributable to Controlling interest?

a. Php 211,420
b. Php 209,820
c. Php 157,220
d. Php 227,200

48 Based on the income statement above, answer the following four (4) independent questions:

How much is the consolidated cost of sales?

a. Php 1,340,000
b. Php 1,650,000
c. Php 1,500,000
d. Php 1,327,800

The income statement of Abakada incorporated and Egaha Company are shown below:
Abakada Egaha
Sales 2,000,000.00 500,000.00
Cost of sales (1,200,000.00) (300,000.00)
Gross profit 800,000.00 200,000.00
Operating expenses (640,000.00) (160,000.00)
Operating income 160,000.00 40,000.00
Other income, includes dividend income 32,000.00 8,000.00
Net gain or loss on sale of fixed assets (19,000.00) 5,000.00
Net income 173,000.00 53,000.00

35 Based on the income statement above answer the following six (6) independent questions:
 Abakada owns 70% of Egaha's outstanding ordinary shares and received Php 21,000 dividend income from Egaha durin
includes a sale of land to Abakada below cost by Php 10,000, how much is the consolidated net income attributable to co
a. Php 196,100
b. Php 152,000
c. Php 210,100
d. Php 220,100

37 Based on the income statement above answer the following six (6) independent questions:

Abakada Incorporated sold inventories to Egaha Company for Php150,000 with 20% gross profit. Egaha sold 80% of the
Abakada owns 70% of Egaha's outstanding ordinary shares. How much is the consolidated gross profit?
a. Php 994,000
b. Php 1,000,000
c. Php 940,000
d. Php 935,800

39 Based on the income statement above, answer the following six (6) independent questions:

Abakada owns 70% of Egaha's is outstanding ordinary shares. If the gain or loss on sale of fixed asset of Egaha pertains
much is the consolidated net income attributable to controlling interest?
a. Php 173,000
b. Php 210,000
c. Php 226,000
d. Php 206,600

46 Based on the income statement above, answer the following six (6) independent questions:

Abakada owns 70% of Egaha's outstanding ordinary shares and Php21,000 dividend was declared by Egaha during the
sale of land to Abakada below cost by Php10,000, how much is the consolidated net gain or loss on sale of fixed assets i
where Php30,000 gain was realized by Abakada?
a. (Php 4,000)
b. (Php 14,000)
c. Php 16,000
d. (Php 24,000)

51 Based on the income statement above, answer the following six (6) independent questions:

Abakada incorporated sold inventories to Egaha Company for Php160,000 with 20% gross profit. Egahara sold 80% of th
Egaha also purchased the same quantity and type of goods from Abakada and sold 25% of it during the current year. Ab
Egaha declared a dividend of Php10,000, how much is the consolidated net income?
Php233,000
Php220,600 Source: TB
 Php226,000
Php219,000

Abakada Egaha
Book value Fair value Book value Fair value
Assets 2,000,000.00 2,200,000.00 800,000.00 768,000.00
Liabilities 200,000.00 220,000.00 150,000.00 142,500.00

Abakada acquired control over Egaha on January 1, 2019 by paying its former shareholders for an amount equal to its sh

Answer the following independent questions:

47 If Abakada acquired 60% of Egaha's outstanding ordinary shares with no control premium, how much is the noncontrollin
a. Php 360,000
b. Php 310,200
c. Php 407,200
d. Php 250,200

50 If Abakada acquired 60% of Egaha's outstanding ordinary share with no control premium, how much is the noncontrolling
Php407,200
Php250,200
Php360,000
Php310,200

At the start of the year, Abakada acquired a significant part of Egaha's outstanding shares. Their seperate records showe

Net Income
Other comprehensive income (loss) during the year
Retained earnings. beginning
Other Comprehensive, beginning

Based on the information above, answer the following independent questions

63 How much is the consolidated net income attributable to NCI if Abakada owns 75% of Egaha's oustanding ordinary share
a Php4,600
b Php850
c Php3,400
d Php1,150

64 If no adjustments are necessary, how much is the consolidated comprehensive income attributable to NCI if Akabada ow
a Php4,800
b Php1,500
 c Php1,200 Source: TB
d Php2,325

65 How much is the consolidated other comprehensive income at year end if the following occured: (a) Abakada owns 75%
and (c) an upstream intercompany loss on sale of land is recorded at Php2,500?
a Php17,050
b Php19,000
c Php22,300
d Php18,100 Source: TB

66 How much is the year-end Consolidated Retained Earnings, if the following occured: (a) Abakada owns 75% of Egaha's o
upstream intercompany loss on sale of land is recorded at Php2,500 (d) Abakada and Egaha declared both dividends Ph
a Php122,500
b Php172,000
c Php129,600
d Php127,825 Source: TB
 Egaha sold 80% of the goods acquired from Abakada during the year.
rrent year. Moreover, Egaha sold to Abakada Php10,000 worth of goods
tanding ordinary shares.
ncome from Egaha during the year. If the gain or loss on sale of fixed asset of Egaha
ncome attributable to controlling interest?

Egaha sold 80% of the goods acquired from Abakada during the year.

asset of Egaha pertains to the sale of land to Abakada with a cost of Php300,000, how

ed by Egaha during the year. If the gain or loss on sale of fixed asset of Egaha includes a
on sale of fixed assets if during the same year, the land was sold to unrelated party

Egahara sold 80% of the goods acquired from Abakada during year. Last year,
ing the current year. Abakada own 70% of Egaha's outstanding ordinary shares. If
an amount equal to its share in the fair value of Egaha's net assets plus Php90,000.

much is the noncontrolling interest?

uch is the noncontrolling interest under partial goodwill approach?

seperate records showed the following results.

Abakada Egaha
20,000.00 6,000.00
4,000.00 -1,200.00
120,000.00 36,000.00
15,000.00 4,500.00

ustanding ordinary shares, and goodwill is impaired by Php1,400

le to NCI if Akabada owns 75% of Egaha's outstanding ordinary shares?

(a) Abakada owns 75% of Egaha's outstanding ordinary shares (b) goodwill is impaired by Php1,400

a owns 75% of Egaha's outstanding ordinary shares (b) goodwill is impaired by Php1,400, and (c) an
clared both dividends Php10,000 each?
 The net income (loss) of the the constituent companies are as follows:
2018 2019 2020
Abakada 30,000.00 29,000.00 32,000.00
Egaha 15,000.00 15,000.00 17,000.00

Both companies were incorporated in 2018. Abakada acquired 60% of Egaha's outstanding ordinary shares on
consolidated records amounted to Php50,000 while the book and fair values of assets and liabilities of both com

Equipment, remaining life of 5 years

Bonds payable, remaining term of 4 years
Land, sold in 2021
Inventories, all sold in 2020

57 Assuming both companies have not declared any dividend during any of the years mentioned above, compute the follow
Independent from any question, assume Egaha declared an annual cash dividend of Php5,000, compute the noncontro
a Php50,000
b Php56,672 Source: TB
c Php56,016
d Php62,928

58 Assuming both companies have not declared any dividend during any of the years mentioned above, compute the follow
Independent from any question, assume Egaha declared an annual cash dividend of Php5,000, compute the consolidat
a Php175,392
b Php135,008 Source: TB
c Php41,024
d Php100,024

59 Assume that both companies have not declared any dividend during any of the years mentioned above, compute the fo
Consolidated Retained Earnings, December 31, 2021
a Php175,560
b Php103,024
c Php73,176
d Php141,008 Source: TB

60 Assuming both companies have not declared any dividend during any of the years mentioned above, compute the follow
Noncontrolling interest, December 31, 2021
a Php 68,928
b Php 50,000
c Php 58,016
 d Php 60,672 Source: TB

61 Assuming both companies have not declared any dividend during any of the years mentioned above, compute the follow
Consolidated retained earnings, December 31, 2020
a Php103,024 Source: TB
b Php175,560
c Php141,008
d Php73,176

62 Noncontrolling interest, December 31, 2020

a Php50,000
b Php58,016 Source: TB
c Php68,928
d Php60,673

The acquisition date book and fair values of assets and liabilities of Abakada and Egaha are as follow:

Abakada
Book Value
Equipment, remaining life of 5 years 200,000.00
Bonds payable, remaining term of 4 years 100,000.00
Land, sold in 2021 500,000.00
Inventories, all sold in 2020 20,000.00

On January 1, 2018, Abakada acquired 90% of Egaha's outstanding shares for Php600,000, with a full goodwill of Php3
separate financial statements showed the following:

Abakada Incorporated 2018

Total assets, December 31 1,500,000.00
Total Liabilities, December 31 120,000.00

Egaha Company 2018

Total assets, December 31 900,000.00
Total Liabilities, December 31 72,000.00

Based on the above information, answer the following independent assumptions:

67 If goodwill is impaired by Php2,500 annually, how much is the consolidated assets as of December 31, 2020?
a Php 1,965,720
b Php 2,029,500
c Php 2,008,220 Source: TB
d Php 2,587,000
68 How much is the consolidated liabilities, December 31, 2020
a Php 203,800
b Php 224,000
c Php 208,000
d Php 212,000

69 How much is the shareholder's equity, December 31, 2020

a Php1,749,220
b Php1,829,000
c Php1,803,720
d Php2,390,700

70 How much is the consolidated assets, December 31, 2018

a Php1,777,440
b Php2,427,440
c Php2,334,696
d Php1,824,440 Source: TB
 2021 2022 2023
34,000.00 31,000.00 29,000.00
-18,000.00 16,000.00 15,000.00

s outstanding ordinary shares on January 1, 2020. On the same sate, NCI recorded in the
assets and liabilities of both companies are as follows:

Abakada Egaha
Book Value Fair Value Book Value Fair Value
200,000.00 196,000.00 160,000.00 156,800.00
100,000.00 120,000.00 80,000.00 96,000.00
500,000.00 475,000.00 400,000.00 380,000.00
20,000.00 22,000.00 16,000.00 17,600.00

ntioned above, compute the following

Php5,000, compute the noncontrolling interest, December 31, 2021

ntioned above, compute the following

Php5,000, compute the consolidated retained earnings, December 31, 2021

mentioned above, compute the following:

ntioned above, compute the following

ntioned above, compute the following

ha are as follow:

Abakada Egaha
Fair Value Book Value Fair Value
196,000.00 160,000.00 156,800.00
120,000.00 80,000.00 96,000.00
475,000.00 400,000.00 380,000.00
22,000.00 16,000.00 17,600.00

0,000, with a full goodwill of Php30,000. The total assets ard liabilities of Abakada and Egaha in their

2019 2020 2021

1,470,000.00 1,617,000.00 1,698,000.00
118,000.00 130,000.00 137,000.00

2019 2020 2021

882,000.00 970,000.00 1,019,000.00
71,000.00 78,000.00 82,000.00

of December 31, 2020?

 In January 1, 20x9, Patinig Company acquired 70% of the outstanding ordinary shares of Katinig Company for a conside
50,000 goodwill. The book value of net assets of Katinig Company is equal to its fair value, except for Bonds Payable wh
10,000. The bonds has a remaining maturity of 5 years at date of acquisition ad is amortized using straight line method.
Earnings balance of the Patinig and Katinig Company:

Retained earnings Patinig Katinig

01/01/20x9 125,000 75,000
12/31/20x9 150,000 93,720
12/31/20y0 176,000 112,720
12/31/20y1 208,500 134,000

In 20x9, Patinig Company sold merchandise to Subsidiary Company costing 2,000 with a 404,500 with a gross profit of 2
from Patinig in 20y1

In April 1, 20x9, Katinig sold to Patinig a 30% depreciated equipment costing 30,000. The proceeds from the sale amoun
of 5 years at date of intercompany sale.

In March 1, 20y1, Patinig Company sold to an unrelated party the equipmnet acquired from Katinig Company. The sale r
1,416.67. It is the Patinig's and Katinig's policy to a declared dividends equal to 2,030,000 and
18,000 in 20x8. Patinig and Katinig maintained a net profit based on sales of 103,000.

52 The consolidated net income attributable to controlling interest in 20y0 is

a $24,800
b $40,200
c $47,508
d $47,200

53 The consolidated retained earnings as of December 31, 20y0 is-

a $176,000
b $202,932
c $206,408
d $206,228

54 The consolidated net income in 20y1 is-

a $68,661
b $70,585
c $69,585
d $68,585

55 The consolidated gain (loss) on sale of equipment is-

a $1,050.00
b ($1,416.67)
 c $2,466.67
d $1,183

56 The consolidated retained earnings as of December 31, 20y1 is-

a $254,000
b $256,240
c $259,740
d $259,273.33
 Company for a consideration which resulted to a
pt for Bonds Payable whichever resulted to additional premium of
ng straight line method. The following data shows the Retained

0 with a gross profit of 20%. Patinig Company sold 2/5 of the merchandise acquired

ds from the sale amounted to 25,000. The equipment has a remaining useful life

ig Company. The sale resulted to a loss of