Compute the consolidated gross profit

Assignment Help Accounting Basics
Reference no: EM132805883

Question - On October 1, 2012, Solar Inc. purchased a piece of land costing P1,000,000 from Power Company for P1,500,000. On December 1, 2013, Solar Inc. sold this land to unrelated party for P1,500,000. On the other hand, on July 1, 2013, Solar Inc. sold a used photo-copier with a carrying value of P60,000 and remaining life of 3 years to Power Company for P42,000.

Separate Statement of Comprehensive income for the two companies for the year 2013 follow:

Power Company Solar Inc.

Sales P25,000,000 P14,000,000

Cost of sales (15,000,000) (8,400,000)

Gross Profit P10,000,000 P5,600,00

Operating expenses (6,000,000) (3,800,000)

Operating Profit P4,000,000 P1,800,000

Loss on Sale of Office Equipment (18,000)

Dividend Revenue 40,000

Net Income P4,000,000 P1,822,000

Required - Compute the Consolidated Gross Profit for 2013?

a. P15,712,000

b. P15,632,000

c. P15,584,000

d. P19,632,000

Reference no: EM132805883

Questions Cloud

Prepare the journal entries for receipt of dividends : Brady's Brunch sells half of the stock in Texas Suppliers for $18,900 on November 25, 20Y5. Prepare the journal entries for Receipt of dividends
What the differential cost of producing product d is : What the differential cost of producing Product D is?Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $21.20
Determine number of equivalent units of production in june : Determine the number of equivalent units of production in the June 30, finishing department inventory, assuming that the first-in, first-out method is used
Consolidated financial statements and its foreign subsidiary : Prepare the required tax journal entries for each year and Prepare a schedule translating the December 31, 20X1, trial balance from Swiss francs to dollars
Compute the consolidated gross profit : On October 1, 2012, Solar Inc. purchased a piece of land costing P1,000,000 from Power Company for P1,500,000. Compute the Consolidated Gross Profit
What flexible budget for units of production would show : $51,100 for direct labor, variable utilities of $7,100, and supervisor salaries of $14,300. A flexible budget for 13,900 units of production would show
Why the specific issues requires further research : In preparation for this discussion forum, make a list of what you learned most throughout the process of researching your final essay topic.
What is the direct labor rate variance for flapjack corp : What The direct labor rate variance is? Flapjack Corporation had 8,042 actual direct labor hours at an actual rate of $12.20 per hour.
Compute Jack net income and taxable income : Jack and Rebecca made charitable donations during 2020 totalling $1,970. Compute Jack net income and taxable income

Reviews

Write a Review

Accounting Basics Questions & Answers

  What are the sections shown on a classified balance sheet

What are the sections shown on a classified balance sheet and define one of the sections listed.

  What distinguishes management fraud from a defalcation

Auditing Standards Review. Management fraud (fraudulent financial reporting) is not the expected norm, but it happens from time to time.

  How much should red rock report as bad debt expense

How much should Red Rock report as bad debt expense on its Year 3 income? statements

  Calculate the firm contribution margin per composite unit

the Youth model sells for $390 and has a unit contribution margin of $150; Calculate the firm contribution margin per composite unit

  Assuming that this exchange is considered

Assuming the same facts as those in (a), except that the fair value of the old crane is $98,000 and the cash paid is $102,000, prepare the journal entries on the books of

  Compute depreciation for each year

Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method

  There should be a minimum of 4 employees and at least 3

develop a corporation chart of accounts taking into consideration the followingcapital structure debt and or

  Some students feel that the online courses should be

online degrees and courses are widely used by colleges and universities around the world. some students feel that the

  Find contribution margin ratio and unit contribution margin

Variable costs are $7 per unit, and fixed costs are $39,300. Find the contribution margin ratio and the unit contribution margin

  Prepare the journal entries to record the issuance of bonds

Prepare the journal entries to record the following events - The payment of interest and the discount amortization on December 31, 2017

  Compute the present value of Austin obligation

Assume the market rate of interest for Austin is 2%. As of 12-31-19, compute the present value of Austin's obligation

  Carla and eliza share income equally during the current

carla and eliza share income equally. during the current year the partnership net income was 40000. carla made

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd