Compute for:

1. consolidated gross profit

2. consolidated net income

3. consolidated expenses

4. consolidated loss on sale of equipment

5. parent's net income for consolidation purposes

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In 2015, Hotel De Tuna acquired 60% of Dam Bam Corporation's outstanding ordinary shares. The consolidated shareholders' equity at acquisition date are as follows: Share capital Share premium Retained earnings Noncontrolling interest Consolidated shareholders' equity 3,200,000 2,400,000 480,000 960,000 4.400,000 The retained earnings of HDT and DBC at the start of 2020, the current year, for each entity are Php1, 120,000 and Php640,000, respectively. There were no changes in the cortributed capital of each entity since acquisition date The retained earnings of DBM at aqcquisition date is Php240,000. Since acquisition date, there were several intercompany transactions between HDT and DBC as shown below: (a) HDT sold goods worth Php80,000 to DBC in 2018, and Php144,000 in 2019. These goods were all sold to outsiders in the year of sale to DBC except for the quarter of these inventories were sold in 2020. The gross profit on these intercompany sales is 40% on sales. (b) On January 1, 2017, DBC sold a 3 year old equipment to HDT for Php480,000 and generated a loss on sale of Php128,000 in its separate books. The equipment has a remaining ife of 10 years at the time of sale. HDT sold this equipment to an outside party on April 1, 2020. Goodwill impairment in 2020 is Php16,000, while impairment loss of Php120,000 was recognized in the prior years. At acqusition date, DBC has an inventory whose fair value exceeds its book value for Php12,800, this inventory was subsequently sold in 2018. The statement of income in 2020 for both entities are shown below: In 2015, Hotel De Tuna acquired 60% of Dam Bam Corporation's outstanding ordinary shares. The consolidated shareholders' equity at acquisition date are as follows: Share capital Share premium Retained earnings Noncontrolling interest Consolidated shareholders' equity 3,200,000 2,400,000 480,000 960,000 4.400,000 The retained earnings of HDT and DBC at the start of 2020, the current year, for each entity are Php1, 120,000 and Php640,000, respectively. There were no changes in the cortributed capital of each entity since acquisition date The retained earnings of DBM at aqcquisition date is Php240,000. Since acquisition date, there were several intercompany transactions between HDT and DBC as shown below: (a) HDT sold goods worth Php80,000 to DBC in 2018, and Php144,000 in 2019. These goods were all sold to outsiders in the year of sale to DBC except for the quarter of these inventories were sold in 2020. The gross profit on these intercompany sales is 40% on sales. (b) On January 1, 2017, DBC sold a 3 year old equipment to HDT for Php480,000 and generated a loss on sale of Php128,000 in its separate books. The equipment has a remaining ife of 10 years at the time of sale. HDT sold this equipment to an outside party on April 1, 2020. Goodwill impairment in 2020 is Php16,000, while impairment loss of Php120,000 was recognized in the prior years. At acqusition date, DBC has an inventory whose fair value exceeds its book value for Php12,800, this inventory was subsequently sold in 2018. The statement of income in 2020 for both entities are shown below:

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More Definitions of Consolidated Gross Profit Consolidated Gross Profit means with respect to the Company and its Subsidiaries on a consolidated basis all profits which in accordance with GAAP would b... View the full answer