Reference no: EM132639203

Questions -

Q1. Fox Corporation purchased 25 percent of Down Company's stock in January 1, 2020 for P 600,000. At the acquisition date, Down has equipment with a market value of P 250,000 greater than book value. On that date, Fox Corporation gives the ability to have joint control with another entity over Down Company. The equipment has an estimated remaining life of 10 years. In 2020, Down has net income of P 320,000 and pays P 80,000 of dividends. What is the balance in the investment account on Fox's financial records at the end of 2020?

Q2. Ranto and Santo formed a joint operation to acquire and sell a special type of merchandise Ranto is to manage the operation and to furnish the capital. The participants are to share equally any gain or loss on the joint operation. On April 1, 2020, Santo sent Ranto P 10,000 cash, which was all used to purchase merchandise. Ranto paid freight of P 260 on the merchandise purchased. On April 27, one half of the merchandisewas sold for P 7,200 cash. Ranto paid the cost of delivering merchandise to customers which amounted to P 240. No further transactions occurred until the end of the month. The profit (loss) of the operation for the month of April, 2011 is?

Q3. MM and RR agreed on a joint operation to purchase and sell car accessories. They agreed to contribute P 25,000 each to be used in purchasing the merchandise, share equally in any gain or loss, and record their operation transactions in their individual books. After one year, they decided to terminate the operation, and data from their records were: Joint operation account credit balances: in books of MM, P18,000; in books of RR, P 20,200, cost of car accessories taken: by MM, P 1,850; by RR, P 2,600, expenses paid: by MM, P 1,800; by RR, P 1,000. How much was the joint operation's sales?