2012 2013

Intercompany sales by Sol to Pan P100,000 P120,000

Intercompany cost of sates 40,000 60,000

Intercompany merchandise, in Pan's

inventory at December 31 at billed 20,000 30,000

prices

Comprehensive income from its own

operations:

Pan Company 200,000 250,000

Sol Company 80, 000 120,000

At January 1, 2012 Pan owned 80 percent of the outstanding voting common stock of Sol

Company, acquired several years ago at book value.

What is the consolidated comprehensive income attributable to parent for 2013?

a. P339,600

b. P346,000

c. P343,600

d. P338,600

54. On January 1, 2013, Poe Corp. sold a machine for £900,000 to Sex Corp.. its wholly-owned

subsidiary, Poe paid P1,100,000 for this machine, which had accumulated depreciation of
P250,000, Poe estimated a P100,000 salvage value and depreciated the machine on the straight

line method over 20 years, a policy which Sex continued. In Poets December 31, 2013,

consolidated statement of financial position, this machine should be included in cost and

accumulated depreciation as:

Cost Accumulated depreciation a. P1,100,000 P300,000

b. P1,100,000 P290,000

c. P900,000 P40,000

d. P850,000 P42,500

55. On January 1, 2011 SST Company purchased a computer with an expected life of

5 years. On January 1, 2013 $ST company sold the computer to PMN corporaiton

and recorded the following entry:

Cash P39,000

Accumulated Depreciation 16,000

Computer Equipment 40,000

Gain on sale of Equipment 15,000

PMN Corporation holds 60% of the voting shares of SST Company SST Company and PMN

Corporation reported income from its own operations of P45,000 and P85,000 for 2013

respectively. There is no change in the estimated life of the equipment as a result of

intercompany sale.