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Those are really the information given as per the handout. I think for Q7, you just need to compare it to the answer on Q6.

On January 1, 2013 P Corporation acquired 70% of the voting common stock of S Co. at a time when 5 Co.'s book values and fair values were equal, except for a equipment which has a fair value of 50,000 more than its book value and with remaining life of 5 years. Separate income statement of P Corporation and S Co. for 2013 are as follows: P Corporation S Corporation Sales P 660,000 P365,000 Dividend income 42,000 Cost of Goods Sold 400,000 200,000 Operating expenses 295,000 100.000 Gain on sale of equipment 150.000 Separate incomes P 157.000 P65,000 Intercompany sales from P to Sfor 2012 and 2013 are summarized as follows: Cost Selling Price Unsold at year-end Intercompany sales - 2012 P 250,000 P 300,000 30% Intercompany sales - 2013 P 175,000 P 250,000 40% Also on January 3, 2013, P Corporation sold equipment (with original cost of P750,000 and carrying cost of P375,000) to S Co. for P525,000. The equipment have a remaining life of three years and was depreciated using the straight-line method by both companies. ACYAVA2 HOMEWORK UNIT 6 - INTERCOMPAY TRANSFER OF PPE 6. Depreciation expense on the consolidated income statement of the equipment sold to s Co.? a. P 50,000 C. P 175,000 b. P 125,000 d. P 375,000 7. How much does the depreciation recorded on the above question differ from the depreciation expense as per consolidated financial statements? a. P 50,000 C. P 175,000 b. P 125,000 d. P 375,000 8. In the Working Paper, how much of the gross profit relating to the sale of inventories shall be deferred for 2013 a. P 30,000 C. P 15,000 b. P 90,000 d. P 100,000 9. Non-controlling interest in the consolidated net income a. P 19,500 C. P 31,500 b. P 15,000 d. P 16,500

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