English Dom Corporation owns 100% of Purebreed value.

In the consolidated balance sheet on December 31

Enterprises. On July 1, 2020, English Dom sold Purebreed 2020.
delivery equipment at a gain. English Dom had owned the 3. The amount of total stockholders’ equity to be reported
equipment for two years and used a five-year straight-line be
depreciation rate with no residual value. Purebreed is using a a. P 440,000 c. P 600,000
three-year straight-line depreciation rate with no residual b. P 488,000 d. P 492,000
value for the equipment.
1. In the consolidated income statement, Purebreed’s 4. The amount of non-controlling interest will be
recorded depreciation expense on the equipment for 2020
a. P 40,000 c. P 88,000
will be decreased by:
b. P 48,000 d. P 52,000
a. 16.67% of the gain on sale
b. 33.33% of the gain on sale
On January 1, 2020. SHELLFISH CORPORATION purch
c. 50% of the gain on sale
75% of the common stock of SQUIDBALL COMPANY. Sepa
d. 100% of the gain on sale balance sheet data for the companies at the combination
are given below:
Parker Corporation sells equipment with a book value of Shellfish Squidball
P64,000 to Sheaffer Enterprises, its 75%-owned subsidiary, Cash 9,600 82,400
for P80,000 on January 1, 2020. Sheaffer determines that the Accounts Receivables 57,600 10,400
remaining useful life of the equipment is four years and that
Inventory 52,800 15,200
straight-line depreciation is appropriate. The December 31,
2020 separate company financial statements of Parker and Land 31,200 12,800
Sheaffer show equipment-net of P400,000 and P240,000, Plant Assets 280,000 120,000
respectively. Accum. Depreciation (96,000) (24,000)
2. The consolidated equipment-net will be: Invesment in Squidballl 156,800 _______-
a. P 640,000 c. P624,000 Total Assets 492,000 216,800
Accounts Payable 82,400 56,800
b. P 628,000 d P520,000 Capital Stock
320,000 120,000
Retained Earnings 89,600 40,000
Balance sheet data for P Corporation and S Company on Total Equities. 492,000 216,800
December 31, 2020, are given below: At the date of combination the book values of Squidball’s
P Corporation S Company assets was equal to the fair value of the net assets excep
Cash P 56,000 P 72,000 Squidball’s inventory which has a fair value of P24,000.
Merchandise 5. What amount of goodwill will be reported?
Inventory 80,000 48,000 a. P12,534 c. P48,800
Property and b. P30,200 d. P40,267
equipment (net) 400,000 200,000
Investment in S 6. What amount of total liability will be reported?
________ P320,000
Company 208,000 a. P139,200 c. P170,400
Total assets P 744,000 b. P227,466 d. P 72,534
P 48,000
72,000
Current liabilities P144,000 80,000 7. What is the amount of total assets?
Long term liabilities 160,000 120,000 a. P 501.334 c. P 601,066
Common stock 240,000 P320,000 b. P 548,800 d. P 591,000
Retained earnings 200,000
Total liabilities & SE P 744,000 On January 1, 2020, Pelican Company purchased 90% o
common stock of Bryan Company for P51,840 over the
P Corporation purchased 80% interest in S Company on value of the shares acquired. All of the differential was re
December 31, 2020 for P208,000. S Company’s property and to land held by Bryan. On May 1, 2020, Bryan sold the
equipment had a fair value of P40,000 more than the book at a gain of P92,800. For the year 2020, Bryan reported
value shown above. All other book values approximated fair income of P211,840 and paid dividends of P51,200. Pelic