Sentinel, Megatron, and Galvatron divide profits and losses in a 2:3:4 ratio. Just prior to liquidating theirpartnership, their respective account balances were P50,000, P96,000, and P74,000 as of April 1, 2020. Theirtotal assets include cash of P5,000 and a loan to Sentinel for P10,000, while their total liabilities of P90,000.include a loan form Galvatron for P30,000. The partners agreed to distribute cash, as it becomes available, at eachmonth-end. Realization proceeds were P15,000 in April, P40,000 in May and P18,000 in June.9. In the cash distribution for the month of June, the distributive share of Megatron amounted toA. 6,000B. 6,476C. 8,635D. 18,857

In this partnership liquidation it is assumed that the realisation…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Twilight Co. paid $2,800,000 to acquire all of the common stock of Aurna Corp. on January 1, 2022. Aurna's reported earnings for 2022 totaled $512,000, and it paid $160,000 in dividends during the year. The amortization of allocations related to the investment was $28,000. Twilight's net income, not including any income from this investment, was $3,310,000, and it paid dividends of $930,000. On the consolidated financial statements for 2022, what amount should be shown for consolidated dividends? OL $160,000 O. $902,000 O.$930,000 OV.$950,000 OV. $1,090,000
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