Solved

Portia Ltd

Question 36

Multiple Choice

Portia Ltd.acquired 80% of Siro Ltd.on December 31,20X0.At the date of acquisition,Siro's net assets totalled $15,000.Portia uses the cost method to record the acquisition.At December 31,20X1,the separate-entity financial statements showed the following:
Portia Ltd.acquired 80% of Siro Ltd.on December 31,20X0.At the date of acquisition,Siro's net assets totalled $15,000.Portia uses the cost method to record the acquisition.At December 31,20X1,the separate-entity financial statements showed the following: During 20X1,Siro sold $7,000 of goods,with a gross margin of 40%,to Portia.At the end of 20X1,$3,000 of the goods were still in Portia's inventory.What portion of consolidated net income for 20X1 is attributable to Portia? A) $6,120 B) $6,240 C) $6,600 D) $7,080
During 20X1,Siro sold $7,000 of goods,with a gross margin of 40%,to Portia.At the end of 20X1,$3,000 of the goods were still in Portia's inventory.What portion of consolidated net income for 20X1 is attributable to Portia?


A) $6,120
B) $6,240
C) $6,600
D) $7,080

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q8: What is the purpose of showing an

Q26: On December 31,20X2,Bates Ltd.purchased 75% of the

Q28: Bates Ltd.owns 60% of the outstanding common

Q29: Portia Ltd.acquired 80% of Siro Ltd.on December

Q30: Which consolidation method does not include incorporating

Q31: On December 31,20X5,Paper Co.purchased 60% of the

Q32: On December 31,20X2,the Esther Company purchased 80%

Q33: On December 31,20X6,the statements of financial position

Q34: Taguchi Ltd.owns 80% of Shag Co.Shag declared

Q35: How is the consolidated ending retained earnings