Reference no: EM132633683

The following information were made available to you by Katz Corp. in line with your audit of its financial statements as of and for the period ended December 31, 2016:

Sales                                                                                              P53,000,000
Purchases                                                                                         32,000,000
Sales discount                                                                                    2,000,000
Purchase discount                                                                               1,200,000
Sales returns and allowance                                                                    1,000,000
Purchase returns and allowance                                                                800,000
Correction of merchandise inventory, beginning error, net of
Income tax - credit                                                                                 400,000
Merchandise Inventory, January 1 (adjusted)                                             3,400,000
Merchandise Inventory, December 31                                                        3,500,000
Distribution costs                                                                                  5,000,000
General and administrative expenses                                                        4,000,000
Interest expense                                                                                 2,000,000
Gain on early extinguishment of long-term debt                                             500,000
Foreign translation adjustment, net of income tax - credit                                250,000
Revaluation surplus for the period, net of income tax                                       700,000
Unrealized loss on financial assets at fair value through other
comprehensive income or losses, net of income tax                                         550,000
Investment income - equity method                                                          3,000,000
Gain on expropriation of asset                                                                      2,000,000
Income tax expense                                                                                     5,000,000
Proceeds from sale of land with a carrying value of P5,300,000                                    4,800,000
Dividends declared 1,300,000
Accumulated profits, January 1, 2016                                                                      4,200,000

Requirements:

Question 1: In a single-statement, statement of comprehensive income, how much shall be reported as cost of goods sold?
a. 30,000,000 c. 29,600,000
b. 29,900,000 d. 29,100,000

Question 2: In a single-statement, statement of comprehensive income, how much shall be reported as net income after tax before other comprehensive income/losses?
a. 8,600,000 c. 9,600,000
b. 9,100,000 d. 10,100,000

Question 3: In a single-statement, statement of comprehensive income, how much shall be reported as total other comprehensive income after tax?
a. 2,400,000 c. 1,250,000
b. 1,400,000 d. 150,000

Question 4: In a single-statement, statement of comprehensive income, how much shall be reported as total comprehensive income after tax for the year?
a. 9,500,000 c. 10,500,000
b. 10,000,000 d. 11,000,000

Question 5: What is the adjusted balance of the accumulated profits, and as December 31, 2016?
a. 10,500,000 c. 12,400,000
b. 12,000,000 d. 12,900,000