On January 1, 20x1, Laughter Co. issued equity instruments in exchange for 75% interest in Tears...

 

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On January 1, 20x1, Laughter Co. issued equity instruments in exchange for 75% interest in Tears Co. Tears Co.'s net identifiable assets have carrying amount and fair value of P300,000 and P360,000, respectively. The difference is attributable to a building with a remaining useful life of 6 years. The December 31, 20x1 statements of profit or loss of Laughter Co. and Tears Co. are summarized below: Statements of profit or loss For the year ended December 31, 20x1 Revenues Operating expenses Profit for the year 6. How much is the consolidated profit in 20x1? a. 301,000 b. 310,000 c. 320,000 d. 336,000 Laughter Co. 1,200,000 (960,000) 240,000 7. How much is the consolidated profit attributable to owners of the parent in 20x1? a. 292,500 c. 320,000 b. 310,000 d. 232,500 Tears Co. 8. How much is the consolidated profit attributable to non-controlling interest in 20x1? a. 6,500 c. 57,500 b. 17,500 d. 77,500 480,000 (400,000) 80,000 On January 1, 20x1, Laughter Co. issued equity instruments in exchange for 75% interest in Tears Co. Tears Co.'s net identifiable assets have carrying amount and fair value of P300,000 and P360,000, respectively. The difference is attributable to a building with a remaining useful life of 6 years. The December 31, 20x1 statements of profit or loss of Laughter Co. and Tears Co. are summarized below: Statements of profit or loss For the year ended December 31, 20x1 Revenues Operating expenses Profit for the year 6. How much is the consolidated profit in 20x1? a. 301,000 b. 310,000 c. 320,000 d. 336,000 Laughter Co. 1,200,000 (960,000) 240,000 7. How much is the consolidated profit attributable to owners of the parent in 20x1? a. 292,500 c. 320,000 b. 310,000 d. 232,500 Tears Co. 8. How much is the consolidated profit attributable to non-controlling interest in 20x1? a. 6,500 c. 57,500 b. 17,500 d. 77,500 480,000 (400,000) 80,000

Answer rating: 100% (QA)

Answer To calculate the consolidated profit for 20x1 we need to follow the steps in the consolidatio... View the full answer