Holy Name University

College of Business and Accountancy

Accountancy Department

APr 106 – Business Combination FINAL EXAMINATION

Instructor: Nicole Uy Ilano, CPA May 20, 2025

Name: Schedule: Score:

INSTRUCTIONS: Read each item carefully and answer the given questions. Write the letter of
your FINAL answers. For theory questions, write the capital letter and for computation
problems, show your solution in good form with labels on the computations.

Test Questions

1. On the date of acquisition of stock, the difference between the fair values and
book values of the subsidiary's identifiable net assets are:

a. Included in a working paper elimination

b. Recognized in the applicable asset and liability accounts of the subsidiary
c. Recognized in the applicable asset and liability accounts of the parent
d. Accounted for in some other manner

2. Which of the following is not true of a business combination classified as

acquisition?

a. The acquirer continues to exist as a separate legal entity

b. The acquiree ceases to exist as a separate legal entity
c. Both companies continue their legal existence
d. One company acquires the assets and liabilities of one or more other companies
in exchange for stock, cash, or other consideration

3. Under the cost method of accounting for investment, depreciation and amortization
of the allocated excess between the fair values and book values of a purchased
subsidiary's identifiable net assets is debited to the:

a. Subsidiary's expense account

b. Parent company's expense accounts
c. Subsidiary's retained earnings account
d. Parent company's investment account

4. A parent regularly sells inventory items to its subsidiary above cost. The amount
of unrealized profit in the ending inventory is obtained by multiplying the:

a. Subsidiary's ending inventory by the parent's gross profit rate on sales

b. Subsidiary's ending inventory by the subsidiary's gross profit rate on sales
c. Parent's ending inventory by the subsidiary's gross profit rate on sale
d. Parent's ending inventory by the parent's gross profit rate on sales

5. The method that increases or decreases the investment in subsidiary stock for the
results of subsidiary's operation is:

a. The equity method

b. The cost method
c. The purchase method
d. The pooling of interest method

6. Palawan Company acquired a subsidiary for cash on January 2, 2017. The price paid
was greater than the fair value of the subsidiary's net assets. The subsidiary
owned inventory with a fair value greater than its cost. A consolidated statement
of financial position prepared immediately after the combination would:

a. Include part of the excess as cost of goods sold

b. Include at least some of the excess as part of inventory
c. Include all of the excess as part of goodwill
d. Not include the excess
7. What percentage of the intercompany gain on fixed asset sale should be used to
reduce consolidated CI?

a. 100% on both downstream and upstream sales

b. Parent's percentage of ownership of Subsidiary on both downstream and
upstream sales
c. 100% on downstream and Parent's percentage of ownership of Subsidiary on
upstream sales.
d. Parent's percentage of ownership of Subsidiary on downstream and 100 percent
on upstream sales.

8. Which of the following is not typical of the journal entries prepared by a parent
company to account for its subsidiary's operations under the cost method of
accounting?

a. Accrual of the parent company's share of the subsidiary's net income or loss
b. A credit to the intercompany dividend income account
c. Depreciation and amortization of differences between current fair values and
book values of the subsidiary's identifiable net assets on the date of the
acquisition
d. None of the foregoing

9. In the computation of NCI in CI of a partially owned subsidiary, the credit to

Depreciation Expense of the parent in the working paper elimination entry for
intercompany gain in a depreciable plant asset is attributed to CI of:

a. The parent company

b. The subsidiary
C. The consolidated entity
d. The parent and subsidiary

10. In acquisition of stock resulting in a parent-subsidiary relationships, the

parent company's Investment in Subsidiary Stock account balance is:

a. Allocated to individual asset and liability accounts in a parent company

journal entry.
b. Eliminated with a working paper elimination for the working paper.
c. Displayed among noncurrent assets in the consolidated statement of financial
position.
d. Used as a basis for adjusting the subsidiary's asset and liability account
balances in the subsidiary's books to current fair values.

11. On January 1, 2017, Parent Company sold equipment to Sub Company, a 90% owned
subsidiary, for a price that resulted in a gain on the sale. The equipment has a
remaining life of 5 years and Sub Company will use the straight-line depreciation.
The December 31, 2017 consolidated statement of financial position should carry
the equipment at:

a. Its original cost less the January 1, 2017 balance of accumulated

depreciation increased by one additional year of depreciation based on
original cost.
b. Its original cost less accumulated depreciation for year 2017 only.
c. Sub's purchase price less depreciation expense for year 2017 based on Sub's
purchase price.
d. Fair market value at December 31, 2017 less zero accumulated depreciation.

12. In an acquisition-type combination, the appropriate accounting for the excess

of fair values of net assets acquired over the price paid is to:

a. Recognize as income in the books of the acquirer

b. Recognize as additional paid-in capital in the books of the acquirer
c. Reduce proportionately current fair values assigned to the acquiree's non-
current assets and recognize any remaining excess as a deferred credit
d. Reduce proportionately current fair values assigned to the acquiree's non-
current assets other investments in marketable securities and recognize any
remaining excess as a deferred credit
13. PCompany sells inventory items to its subsidiary, S Company. If unrealized
profits in S Company's 2016 year-end inventory exceed the unrealized profits in
its 2017 year-end inventory:

a. Combined cost of sales will be less than consolidated cost of sales in 2017
b. Combined cost of sales will be more than consolidated cost of sales in 2017
c. Combined gross profit will be greater than consolidated gross profit in 2017
d. Combined sales will be less than consolidated sales in 2017

14. Which of the following is included as part of the consideration given?

a. Direct and indirect acquisition costs attributable to the acquisition.

b. Indirect costs and contingent consideration.
c. Contingent consideration.
d. All expenses and liabilities relating to the acquisition.

15. Under the acquisition method the retained earnings of the acquirer after the
combination is equal to:

a. The sum of the retained earnings of the acquiree and the acquirer.
b. The retained earnings of the acquirer plus any income from acquisition.
c. The retained earnings of the acquirer only.
d. The retained earnings of the acquirer less any amortization of goodwill.

16. P Company sells inventory items to its subsidiary, S Company. If unrealized

profits in S Company’s 2016 year-end inventory exceed the unrealized profits in
its 2017 year-end inventory:
a. Combined cost of sales will be less than consolidated cost of sales in 2017
b. Combined cost of sales will be more than consolidated cost of sales in 2017
c. Combined gross profit will be greater than consolidated gross profit in 2017
d. Combined sales will be less than the consolidated sales in 2017

17. Elimination entries for intercompany profit in the consolidation working paper
are prepared in order to:
a. Defer intercompany profit until realized
b. Allocate unrealized profits between controlling and non-controlling interests
c. Reduce consolidated net income
d. Nullify the effect of intercompany transactions on consolidated statements

18. A 90 percent-owned subsidiary buys merchandise from its parent above cost. Most
of this merchandise is unsold at year-end. What percent of the intercompany profit
in the subsidiary’s ending inventory should be deferred by the parent on its books?
a. 100 percent under the equity method
b. 90 percent under the equity method
c. 0 percent – this is an upstream sale
d. 0 percent – this is a downstream sale

19. A parent buys merchandise from its 90% owned subsidiary above cost and does not
resell it before year-end. What percent of the unrealized profit in the parent’s
ending inventory should be removed from consolidated CI?
a. 90 percent
b. 100 percent
c. 10 percent
d. 0 percent

20. The direction of intercompany sales (downstream or upstream) does not affect
consolidation working elimination procedures when the intercompany sales between
affiliated companies are made:
a. More than fair value
b. At fair value
c. At book value
d. To a wholly owned subsidiary
21. On January 1, 2017, Parent Company sold equipment to Sub company, a 90% owned
subsidiary, for the price that resulted in a gain on the sale. The equipment has
a remaining life of5 years and Sub Company will use the straight-line depreciation.
The December 31, 2017 consolidated statement of financial position should carry
the equipment at:
a. It’s original cost less the January 1, 2017 balance of accumulated depreciation
increased by one additional year of depreciation based on original cost.
b. Its original cost less accumulated depreciation for year 2017 only
c. Sub’s purchase price less accumulated depreciation expense for year 2017 based
on Sub’s purchase price.
d. Fair market value at December 31, 2017 less zero accumulated depreciation.

22. When an 80%-owned subsidiary records a gain on a sale to a parent during the
current period and the land is not resold before the end of the period:
a. The full amount of the gain will be excluded from the consolidated CI.
b. Consolidated CI will be increased by the full amount of the gain
c. A proportionate share of the unrealized gain will be excluded from income
assigned to NCI.
d. The full amount of the unrealized gain will be excluded from income assigned to
NCI

23. What percentage of the intercompany gain on fixed asset sale should be used to
reduce consolidated CI?
a. 100% on both downstream and upstream sales
b. Parent’s percentage of ownership of Subsidiary on both downstream and upstream
sales
c. 100% on downstream and Parent’s percentage of ownership of subsidiary on
upstream sales.
d. Parent’s percentage of ownership of Subsidiary on downstream and 100 percent on
upstream sales.

24. In the computation of NCI in CI of a partially owned subsidiary, the credit to

Depreciation Expense of the parent in the working paper elimination entry for
intercompany gain in a depreciable plan asset is attributed to CI of:
a. The parent company
b. The subsidiary
c. The consolidated entity
d. The parent and subsidiary

25. If an intercompany sale of a depreciable asset occurs on the last day of a

fiscal period and results in a gain to the seller:
a. 100% of a downstream gain must be removed from the consolidated CI.
b. The parent’s proportional share of an upstream gain must be removed from
consolidated CI and the remainder removed from NCI CI.
c. The asset must be shown on the consolidated balance at its original book value
d. All the above are true.

PROBLEM SOLVING

1. On January 1, 2017, Pol Corporation sold equipment to Sin Company, its wholly owned
subsidiary, for P680,000. Pol paid P1,000,000 for this equipment, for which the
depreciation to the date of intercompany sale totaled P360,000. Both companies use
the straight-line method of depreciation for their depreciable assets. The
equipment had a 10-year life when purchased and an expected salvage value of
P100,000. What amount should be included in the consolidated statement of financial
position at December 31, 2017, for the equipment cost and accumulated depreciation?

a. P 1,000,000 and P360,000

b. P 680,000 and P450,000
c. P 1,000,000 and P450,000
d. P 680,000 and P360,000

2. MM Company issued its common stock for the net assets of PP Company in a business
combination treated as acquisition. MM's common stock issued was worth P1,000,000.
At the date of combination, MM's net assets had a book value of P1.2 million and
a fair value of P1.6 million; PP's net assets had a book value of P650,000 and a
fair value of P800,000. Immediately following the combination, the net assets of
the combined company should have been reported at what amount?

a. P3,000,000
b. P2,200,000
 c. P2,000,000
d. P1,850,000

3. Popo Corporation purchased 95 percent of the stock of Sotto Company on January

2016. On that date, the book value of Sotto's net assets approximated fair value.
As a result of the purchase, Popo recognized P60,000 of goodwill. During 2016,
Sotto sold inventory to Popo. On December 31, 2016, Sotto had unrealized profits
on its books of P10,000. By December 31, 2017, all of the inventory left on Popo's
books had been sold to outside parties. During 2017, Popo sold inventory to Sotto
and had P15,000 of unrealized profits left on its books at the end of 2017. For
2017, Popo reported operating income of P500,000, and Sotto reported CI of
P360,000. What is the consolidated CI attributable to parent for 2017?

a. P836,500
b. P833,000
C. P833,500
d. P855,000

4. On January 1, 2017, Pit Company purchased 90% of Sit company for P400,000. On that
day, Sit company’s equity consisted of P100,000 of capital stock and P300,000 of
retained earnings. Assets and liabilities were fairly valued.

In 2016, Sit had sales of P500,000 and cost of sales. One half of the sales were
to Pit. Sit’s pricing policy has not changed for several years.

At January 1, 2017, Pit’s inventory contained P40,000 of Sit’s merchandise

purchased in 2016. Pit’s December 31, 2017, inventory included P25,000 of Sit’s
Merchandise. Both companies use FIFO.

For 2017 Pit had CI from its own operations of P200,000 and paid dividends
during the year.

For 2017, consolidated CI attributable to parent is:

a. P270,900
b. P272,900
c. P271,000
P271,900

5. On January 2, 2017, Puzon Corporation purchased an 80% investment in Suarez

Company. The purchase price was equal to Puzon's equity in Suarez's net assets at
that date. On January 2, 2017, Puzon and Suarez had retained earnings of P500,000
and P100,000, respectively. During 2017, (1) Puzon had CI of P200,000, which
included its equity in Suarez's dividends, and declared dividends of P50,000; (2)
Suarez had CI of P40,000 and declared dividends of P20,000; and (3) there were no
other intercompany transactions. On December 31, 2017, the consolidated retained
earnings should be:

a. P650,000
b. P674,000
C. P666,000
d. P770,000

6. On January 1, 2016, Pat Corporation acquired 80% of Sun Company at book value. The
following information is available for years 2016 and 2017:
________________________________________________________________________________
2016 2017____
CI from its own operations:
Pat Corporation P500,000 P550,000
Sun Company 200,000 225,000
Intercompany sales by Pat to Sun 100,000 120,000
Intercompany cost of sales 60,000 60,000
Inventory at billed prices, Dec. 31 20,000 30,000

The consolidated comprehensive income in 2016 and 2017 are:

a. P652,000 and P723,000, respectively

b. P692,000 and P768,000, respectively
C. P652,000 and P715,000, respectively
d. P653,600 and P724,400, respectively

7. On January 1, 2016, Puzon Company purchased 75% of the outstanding stock of Suazon
Company at book value. During 2017 Suazon sold inventory items costing P50,000 to
 Puzon for P75,000. Puzon resold 60% of this inventory to outsiders during the year
for P100,000. For the year 2017 Puzon had CI from its own operations of P200,000
and paid dividends of P120,000. Suazon's CI for the year was P110,000; it paid
P40,000 in dividends. What is the consolidated CI attributable to parent for 2017?

a. P273,000
b. P276,000
C. P300,000
d. P275,000

8. Papa Corporation owns 75% of the outstanding stock of San Company, acquired at
book value in 2015. Selected information from the accounts of Papa Corporation and
San Company for 2017 are as follows:

Papa Corp. San Co._____

Sales P900,000 P500,000

Cost of goods sold 490,000 190,000___

During 2017 Papa sold merchandise to San for P50,000 at a gross profit of P20,000.
Half of this merchandise remained in San's inventory at December 31, 2017. San's
December 31, 2016 inventories included unrealized profit of P4,000 on goods
acquired from Papa.

In the consolidated CI for Papa Corporation and subsidiary for the year 2017,
consolidated sales and cost of goods sold should be:

a. P1,450,000 and P636,000

b. P1,350,000 and P636,000
C. P1,350,000 and P634,000
d. PI,400,000 and P624,000

9. Patton Corporation acquired a 60% interest in Solis Company on January 1, 2017 for
P360,000, when Solis' net assets had a book value and fair value of P600,000.
During 2017, Patton sold inventory items that cost P600,000 to Solis for P800,000,
and Solis' inventory at December 31, 2017 included one-fourth of this merchandise.
Patton reported separate income from its own operations (excluding investment
income) of P300,000, and Solis reported a net loss of P150,000 for 2017.
Consolidated CI for Patton Corporation and Subsidiary for 2017 is:

Continuation, #8..

a. P180,000
b. P100,000
C. P160,000
d. 260,000

10. On June 30, 2017, White Corporation issued 100,000 shares of its P20 par value
common stock for the net assets of Black Company in a business combination accounted
for by the acquisition method. The market value of White's common stock on June 30
was P36 per share. White paid a fee of P100,000 to the broker who arranged this
acquisition. Costs of SEC registration and issuance of the equity securities
amounted to P50,000.

Contingent consideration determined to be paid to Black Company after acquisition

amounts to P120,000.

What amount should White capitalize as the cost of acquiring Black's net assets.

a. P3,620,000
b. P3,650,000
C. P3,720,000
d. P3,750,000

11. On January 1, 2016 Pro Company acquired 70% of Sol, Inc., at book value. On
December 31, 2017, Sol sold a computer to Pro for P90,000. Sol acquired the computer
at a cost of P60,000. Pro will use a 10-year life, no salvage value, and straight-
line depreciation. For 2017 Sol reported CI of P100,000. What is the NCI in Cl of
subsidiary?

a. P38,100
b. P21,000
c. P49,000
d. P30,000
12. On July 1, 2017, Pepe Company borrowed P160,000 to purchase 80 percent of the
outstanding common stock of Sara Company. This loan, carrying a 12 percent annual
rate, is payable in 10 annual installments beginning July 1, 2018. Summarized
portions of Pepe Company's and Sara Company's staternent of financial position as
of June 30, 2017, are as follows:
________________________________________________________________________________
Pepe Company Sara Company_
Total assets P800,000 P300,000
Total liabilities 250,000 155,000
Total stockholders' equity 550,000 145,000

The book values of Sara Company's assets and liabilities approximated market values
except for accounts payable, which had a fair value that was P5,000 more than the
book value. Any remaining difference is attributable to goodwill. The amounts to
be recorded on the consolidated statement of financial position at July 1, 2017,
for total assets and total liabilities are:

Total Assets Total Liabilities

a. P1,025,000 P586,750
b. P1,100,000 P565,000
C. P1,151,000 P408,750
d. P1,160,000 P570,000

13. Pete Enterprises owns 60% of the outstanding stock of Susie Company, which it
purchased for P50,000 above the underlying book value of P720,000 on December 31,
2014. For the year 2017, Susie included in its CI P90,000 of unrealized gain on a
year-end sale of depreciable assets to Pete. The NCI of Susie was assigned P12,000
of income in the 2017 consolidated financial statements. The excess allocated to
equipment is amortized over 20 years. What is the CI reported by Susie for 2017?

a. P120,000
b. P150,000
C. P125,000
d. P155,000

14. Popo Corporation purchased 95 percent of the stock of Sotto Company on January
2016. On that date, the book value off Sotto’s net assets approximated fair value.
As a result of the purchase, Popo recognized P60,000 of goodwill.

During 2016, Sotto sold inventory to Popo. On December 31, 2016, Sotto had
unrealized profits on its books of P10,000. By December 31, 2017, all of the
inventory left on Popo’s books had been sold to outside parties. During 2017,
Popo sold inventory to Sotto and had P15,000 of unrealized profits left on its
books at the end of 2017.

For 2017, Popo reported income of P500,000 and Sotto reported CI of P360,000.
What is the consolidated Ci attributable to parent for 2017?

a. P836,500
b. P833,000
c. P833,500
d. P855,000

15. Pete Enterprises owns 60% of the outstanding stock of Susie Company, which it
purchased for P50,000 above the underlying book value of P720,000 on December 31,
2014. For the year 2017, Susie included in its CI P90,000 of unrealized gain on a
year-end sale of depreciable assets to Pete. The NCI of Susie was assigned P12,000
of income in the 2017 consolidated financial statements. The excess allocated to
equipment is amortized over 20 years.

What is the CI reported by Susie for 2017?

a. P120,000
b. P150,000
C. P125,000
d. P155,000

16. Pita Company acquires a controlling interest in Soda Company in the open market
for P120,000. The P100 par value capital stock of Soda Company at the date of
acquisition is P125,000 and its retained earnings amounts to P50,000. The market
 value per share of Soda Company is P120 per share. In the. consolidated statement
of financial position on the date of acquisition, non- controlling interest would
show a balance of:

a. P40,000
b. P35,000
C. P17,500
d. P30,000

17. Sulu Company is 80% owned by Palawan, Inc. On January 1,2011, Sulu paid P100,000
for a truck with an expected life of 10 years with no residual value. Sulu sold
the truck to Palawan, on January 1, 2017. During the preparation of the
consolidation working paper for 2017, the following working paper elimination entry
for the intercompany sale of truck was made:

Truck 48,000
Gain on sale of truck 12,000
Depreciation expense 3,000
Accumulated depreciation 57,000

What amount did Palawan pay Sulu for the truck?

a. P52,000
b. P62,000
C. P90,000
d. P40,000

18. On January 1, 2017, Pit Company purchased 90% of Sit Company for P400,000. On
that day Sit Company's equity consisted of P100,000 of capital stock and P300,000
of retained earnings. Assets and liabilities were fairly valued.

In 2016, Sit had sales of P500,000 and cost of sales of P300,000. One half of the
sales were to Pit. Sit's pricing policy has not changed for several years.

At January 1, 2017, Pit's inventory contained P40,000 of Sit's merchandise

purchased in 2016. Pit's December 31, 2017, inventory included P25,000 of Sit's
merchandise. Both companies use FIFO.

For 2017 Pit had CI from its own operations of P200,000 and paid dividends of
P80,000. Sit's CI for 2017 was P75,000; it paid P30,000 dividends during the year.

For 2017, consolidated CI attributable to parent is:

a. P270,900
b. P272,900
C. P271,000
d. P271,900

19. On January 1, 2017, Pee Company purchased 80% of the outstanding shares of Sy
Company at a cost of P800,000. On that date, Sy Company had P500,000 of capital
stock and P500,000 of retained earnings. For 2017, Pee Company had CI of P280,000
from its own operations (excluding its share of income from Sy) and paid dividends
of P150,000.

For 2017, Sy Company reported CI of P65,000 and paid dividends of P30,000. All the
assets and liabilities of Sy Company have book value equal to their respective
market values.

On January 1, 2017, Pee Company sold equipment to Sy Company for P100,000. The
book value of the equipment on that date was P120,000. The loss of P20,000 is
reflected in the CI of Pee Company indicated above. The equipment is expected to
have a useful life of five years from the date of the sale.

In the December 31, 2017 consolidated statement of financial position, the NCI
should be presented at:

a. P213,000
b. P207,000
C. P213,000
d. P200,000

20. Pat Corporation owns 70% of Susan Company's outstanding stock, acquired on
January 1,2016. Susan regularly sells merchandise to Pat at 150% of Susan's cost.
Pat's December 31, 2016 and 2017 inventories include goods purchased intercompany
of P112,500 and P33,000, respectively. The separate incomes (excluding investment
income) of Pat and Susan for 2017 are summarized in the following page…
 ________________________________________________________________________________
Pat Corp Susan Co.__
Sales P1,200,000 P800,000
Cost of goods sold (600,000) (500,000)
Operating expenses (400,000) (100,000)
CI from own operations P200,000 P200,000
________________________________________________________________________________
Consolidated CI should be allocated to parent and NCI in the amount of:

a. P338,550 and P67,950, respectively

b. P346,500 and P67,950, respectively
C. P346,500 and P60,000, respectively
D. P358,550 and P67,950, respectively

21. On January 2, 2017, Pascual Corporation purchased 80 percent of Suazon Company's

P10 par common stock for P975,000. On this date, the book value of Suazon's net
assets was P1,000,000. The fair value of Suazon's identifiable assets and
liabilities were the same as their carrying amounts except for plant assets (10-
year life), which were P100,000 in excess of the carrying amount. For the year
ended December 31, 2017, Suazon had comprehensive income of P190,000 and paid cash
dividends totaling P125,000. In the December 31,2017 consolidated statement of
financial position, non-controlling interest (NCI) should be reported at:

a. P200,000
b. P236,000
C. P220,000
d. P182,750

22. Paw, Inc. owns 75% of Saw Company, purchased several years ago at book value.
On July 1, 2017, Saw sold to Paw a used computer at a loss of P12,000. The computer
has a 5-year life from the date of the intercompany sale, straight-line
depreciation will be used, and it has no salvage value. In year 2017, Saw had CI of
P100,000 and paid dividends of P60,000. The NCI in CI of subsidiary for 2017 is:

a. P21,700
b. P22,300
C. P27,700
d. P28,300

23. On January 1, 2017, Pete Company sold equipment to Sison Company, its wholly
owned subsidiary, for P400,000. The equipment had a cost of P500,000; the
accumulated depreciation at the time of the sale was P250,000. Pete used a 10-year
life, no salvage value, and straight-line depreciation. Sison will continue this
practice. On the consolidated statement of FP at December 31, 2017, the cost and
accumulated depreciation of the equipment should be stated at:

a. P500,000 and P300,000

b. P400,000 and P50,000
C. P400,000 and P80,000
d. P250,000 and P50,000

(#’s 24-25) Pepsi Corporation purchased 70 percent of Sarsi Company's voting stock on
May 18, 2013, at underlying book value. The companies reported the following data with
respect to intercompany sales in 2016 and 2017:

Year-Purchased by - Purchase Price-Sale Price-Unsold at End of the Year-Year Sold to outsiders

2016 Sarsi P120,000 P180,000 P45,000 2017

2017 Sarsi P90,000 P135,000 30,000 2018

2018 Pepsi 140,000 ` 280,000 110,000

Pepsi reported operating income (excluding dividend income) of P160,000 and P220,000
in 2016 and 2017, respectively. Sarsi reported CI of P90,000 and P85,000 in 2016 and
2017, respectively.

24. What is the amount of consolidated CI attributable to parent for 2016?

a. P212,500
b. P235,000
C. P190,000
d. P210,500
25. What is the amount of inventory balance to be reported in the consolidated
statement of financial position at December 31, 2017?

a. P75,000
b. P70,000
C. P95,000
d. P75,000

-End of Exam-
“The mind is not a vessel to be filled but a fire to be ignited - Plutarch”