CHAPTER 17
MULTIPLE CHOICE
17-1: B
Consolidated sales
Sales – Papa P 900,000
Sales – San 500,000
Elimination of inter-company sales ( 50,000)
Consolidated sales P 1,350,000
Consolidated cost of goods sold
Cost of goods sold – Papa P 490,000
Cost of goods sold – San 190,000
Eliminations:
Realized profit in beginning inventory ( 4,000)
Unrealized profit in ending inventory 10,000
Intercompany purchases ( 50,000)
Consolidated cost of goods sold P 636,000
17-2: c
Net income – Sisa P 60,000
Unrealized profit in ending inventory – upstream ( 10,000)
Adjusted net income – Sisa P 50,000
Minority interest proportionate share 20%
Minority interest in net income of subsidiary P 10,000
17-3: d
Net income from own operation – Pat P 200,000
Pat’s share of adjusted net income of Susan:
Net income – Susan P200,000
