29.

On January 1, 2013 consolidated statement of financial position, what is the amount of

goodwill to be reported?

a. P60,000

b. P15,000

c. P25,000

d. P40,000

30. The separate statements of comprehensive income of Pearl Company and its 90% owned

subsidiary, Serena Company, for the year ended December 31,2013 below the following:

Pearl company Serena company

Comprehensive income P108,000 P20,000 Dividend income 18,000 -

The following additional data apply:

• On January 1,2013, Serena Company purchased a building, with a book value of

P100,000 and an estimated 20-year life, from Pearl Company for P180,000. The building

was being depreciated on a straight-line basis with no salvage value.

• On January 1,2013, Serena Company sold a machine with a book value of P50,000 to

Pearl Company for P60,000. The machine had an expected life of 5 years and is being

depreciated on a straight-line basis with no salvage value. Serena company is a dealer

for the machine.

On December 31,2013, what is the consolidated comprehensive income?

a. P106,000

b. 122,000
c. 142,000

d. 130,000

31. Using the same data in No. 30. On December 31,2013, what is the consolidated

comprehensive income attributed to controlling interest? a. P104,000

b. 122,000

c. 120,000

d. 110,000

Questions 32 and 33 are based on the following data

Penny Company owns an 80% controlling interest in the Sandy Company. Sandy regularly sells

merchandise to Penny, which then sold to outside parties. The gross profit on all such sales is

40%. On January 1,2012, Penny sold land and a building to Sandy. The value of the parcel is 20%

to land and 80% to structures. Pertinent data for the companies is summarize in the next page:

No, 32 & 33 -- Continued

Penny Sandy

Internally generated net P520,000 P250,000 income, 2012

Internally generated net 3440,000 235,000

income, 2013