Company X transfers an asset that originally cost of P10,000 to its wholly owned subsidiary...
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Accounting
Company X transfers an asset that originally cost of P10,000 to its wholly owned subsidiary Company Yin 20X1. The transfer price was P13,000. Both companies charge straight-line depreciation at 10 per cent per annum. A full year's charge is made in the year of acquisition and none in the year of disposal. Company X had owned the asset for five years prior to the period in which the asset was transferred. Ignoring the effects of deferred tax, what is the net adjustment required to group profit in 20X1? * Your
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