b.

P 9,000

c. P 3,000

d. P 6,000

41. PM Company acquired a 70% interest in the SP Company in 2011 at a cost equal

to its book value. For the year ended December 31, 2013, PM Company

Company reported net income from their own operations of P120,000 and P90,000

respectively.

During 2012, SP sold merchandise to PM for P10,000 at a profit of P2,000. The

merchandise was later resold by PM to outsiders for P15,000 during 2013.

No. 41 – Continued

What is the consolidated total comprehensive income attributable to parent on

December 31, 2013? a. P210,000

b. P182,400

c. P183,000

d. P182,000

42. During 2013, PP Corporation sold goods to its 80% owned subsidiary, SS Company.

At December 31, 2013, one-half of these goods were included in SS Company's ending

inventory. Reported 2013 selling expenses were P110,000 and P40,000 for

PP and SS, respectively. PP's selling expenses included P5,000 in freight-out costs

for goods sold to SS.

What amount of selling expenses should be reported in PP's 2013 consolidated

statement of comprehensive income?

a. P150,000

b. P148,000

c. P 147,500

d. P145,000

43. On June 30, 2013, PJ Corporation issued 150,000 shares of its P20 par common

stock for which it received all of SG company's common stock. The fair value of the

common stock issued is equal to the book value of SG company's net assets. Both

companies continued to operate as separate businesses, maintaining accounting

records with years ending December 31. Net income from own operations and

dividends paid were:

PJ Corp. SG Co.

Net income:

Six months ended 6130/013 P750,000 P225,000 Six months ended

12/31/013 825,000 375,000

Dividends paid:

March 25, 2013 950,000 November 15, 2013 - 300,000