Transcribed Image Text: ABC acquired 70% of EFG on June 30, 2021. Based on EFG’s acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the

Transcribed Image Text: ABC acquired 70% of EFG on June 30, 2021. Based on EFG’s acquisition-date fair value on intangible of
P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial
statements+re as follows:
АВС
EFG
Sales
Cost of goods sold
Operating Expenses
800,000
(535,000)
(100,000)
35,000
600,000
(400,000)
(100,000)
Dividend Income
Net Income
200,000
100,000
Retained Earnings, beg
1,300,000
200,000
(100,000)
1,400,000
850,000
100,000
(50,000)
900,000
Net Income
Dividend Paid
Retained Earnings, end
Cash and Receivables
400,000
300,000
298,000
902,000
1,000,000
(300,000)
2,300,000
Inventory
700,000
Investment in EFG
Fixed Assets
Accumulated Depreciation
Totals
600,000
(200,000)
1,400,000
Labilities
Ordinary Share
Accumulated Profit
Totals
600,000
300,000
1,400,000
2,300,000
400,000
100,000
900,000
1,400,000
EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end
30% remained. EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year-end, 20% is
left. Compute for Consolidated Cost of Goods sold.

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