Reference no: EM133239785

1. Integrity Corp. manufactures a product that yields the by-product, "Yum". The only costs associated with Yum are selling costs of P0.10 for each unit sold. Integrity accounts for sales of Yum by deducting Yum's separable costs from Yum's sales, and then deducting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1 each.

If Integrity Anson changes its method of accounting for Yum's sales by showing the net revenue as other income, then net income would

A. Increase by P90,000

B. Increase by P110,000

C. Be unaffected

D. Decrease by P90,000

2. A statement of realization and liquidation has been prepared for the RESTLESS Corporation. The following information is available:

Assets to be realized- P60,000

Liabilities assumed- P50,000

Assets acquired- P40,000

Liabilities not liquidated- P40,000

Assets realized- P55,000

Liabilities to be Liquidated- P80,000

Assets not realized- P15,000

Liabilities liquidated- P60,000

Supplementary credits- P110,000

Supplementary Charges- P97,000

How much is shareholders' equity, beg. assuming that the cash balance, ending amounted to P50,000?

A. P118,000

B. P92,000

C. P55,000

D. P12,000