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Question No. 51 Answer C
Question No. 51 Answer C
Greek is part of a
consolidated group. In the financial period immediately following the date on which it became
an associate, the Roman took the following action:
revalued assets up to fair value by P500,000
generated profits of P1,600,000
declared a dividend of P300,000
The balance in the Greeks account of Shares in associate, after equity accounting has been
applied, is:
a. P3,000,000
b. P3,960,000
c. P3,720,000
d. P3,840,000
2. Power Company purchased 15% of Bank Companys 500,000 outstanding ordinary shares on
January 2, 2016, for P15,000,000. On December 31, 2016, Power purchased additional
125,000 shares of Bank for P35,000,000. There was no goodwill as a result during 2016.
Bank reported earnings of P20,000,000 for 2016. What amount should Power report in its
December 31, 2016 balance sheet as investment in Bank Company?
a. P50,000,000
b. P55,000,000
c. P58,000,000
d. P53,000,000
No Significant Influence
First Investment P15,000,000
Second Investment 35,000,000
Total Investment P50,000,000
228.) The Vergara Company owns three properties which are classified as investment properties.
Information below is as follows:
Property Cost Fair Value 2014 Fair Value 2015
1 270, 000 320, 000 350, 000
2 345, 000 305, 000 285, 000
3 330, 000 385, 000 360, 000
Each property had an estimated useful life of 50 years. The company elects the fair value method.
What is the gain or loss to be recognized in Vergaras income ststement?
a. P18, 900 loss
Answer: B
Property 1 P30, 000
Property 2 (P 20, 000)
Property 3 (P25, 000)
Loss P 15, 000
230.)How much is the carrying amount of the shopping mall on December 31, 2017 if
Perseus used the cost model?
a. 100,000,000
b. 115,000,000
c. 97,500,000
d. 95,000,000
Answer:
229: A
230: D
229:
2016
Fair Value P120,000,000
Cost (100,000,000)
Gain P20,000,000
2017
Fair Value P115,000,000
Carrying Amount (120,000,000)
Loss (P5,000,000)
230.