PRACTICAL ACCOUNTING 2 Liabilities (total) (240)

Payment to partners (240)

1. A balance sheet for the partnership of Adrian, Cash withheld 36
Monica and Nicole, who share profits in the ratio of
2:1:1 shows the following balances just before
liquidation. 2. Rockwell makes a single product I two Departments.
Assets liabilities and Equity The production data for Dept. 2 for August 2010
Cash 144,000 liabilities 240,000 follows:
Other assets 714,000 Adrian, capital 264,000
Monica, Capital 186,000 Production cost Last Month This Month
Nicole, Capital 168,000
Transferred in 40, 750 222,750
In the first month liquidation, certain assets are sold Materials 9,500 168,750
for P384,000. Liquidation expenses of P12,000 are Conversion 4,850 202,500
paid, and additional expenses are anticipated.
Liabilities of P64,800 are paid and sufficient cash is Quantities
retained for the anticipated liquidation expenses. In In beg (40% done) 10,000
the first payment to partners, Adrian receives Received from dept.1 75,000
P75,000. Completed and transferred 62,500
In process end (60% done) 15,000
The amount of cash withheld of the anticipated
liquidation expenses is : Materials are added at the start of the process, and
losses normally occur during the early stages of
operation.
a. 0 c. 36,000
b. 175,000 d. 211,200
Compute the cost the WIP end using average and COGM
using FIFO method, respectively;
solution: C
A M N Total a. 111, 600; 535,200 c. 114,000; 488,125
TE 264 186 168 618 b. 111, 600; 488,125 d. 114,000; 535,200
LOSS (189) (94.5) (94.5) 378
CAFN 75 91.5 73.5 240 Solution: A
CPD MAT CC
Cash beginning 144 FT 62,500 62,500 62,500 62,500
Proceeds 384 IPE 15,000 15,000 15,000 9,000
LE paid (12) WA 77,500 77,500 77,500 71,500
 IPB (10,000) (10,000) (10,000) (4,000)
FIFO 67,500 67,500 67,500 67,500 Solution: C
Materials:weighted average units %complete Eq.
WA FIFO unit
CPD 263,500@3.4 CLM P 55,100 s
M 178,250@2.3 CPD 222,750@3.3 Beginning work in process 14,500 100% 14,500
CC 207,350@2.9 MAT 168,759@2.5 +units started and completed 51,500 100% 51,500
649,100 8.6 CC 202,500@3 + ending work in process 16,000 100% 16,000
FT 537,500 649,100 + abnormal spoilage 2,500 100% 2,500
IPE 111,600 IPE 114,000 Equivalent unit production 84,500
FT 535,200

3.The following information is available for SMART 4. HELLIGERS company has the following information for
Company for the current year: July:
Units started 100,000 units
Beginning Work in process Beginning: work in process:(30% complete)20,000 units
(75% complete) 14,500 units Normal spoilage (discrete) 3,500units
Started 75,000 units
Ending work in process Abnormal spoilage 5,000units
(60% complete) 16,000 units
Abnormal spoilage 2,500 units Ending work in process 14,500 units
Normal spoilage 5,000 units
Transferred out 97,000units
(Continuous)
Transfer out 66,000 units Beginning work in process:
All materials are added at the start of production Material P 15,000
Costs of beginning work in process; Conversion 10,000
Material $ 25,000 All materials are added at the start of the production
Conversion 50,000 process, Helligers Company inspects goods at 75%
Current costs: completion as to conversion.
Material $ 120,000
Conversion 300,000 What are equivalent units of production for conversion
costs, assuming FIFO?
Using weighted average, what are equivalent units for
material? a. 108,900 b. 103,900 c. 108,650 d. 106,525
a. 82,000 b. 89,500 c. 84,500 d. 70,000
 Solution:D Which of the following statements about the
creditors of CRC is false?
CONVERSION:FIFO
Beginning:work in process 20,000 65% 13,000 a. The unsecured creditor without priority will receive
+ units started and 77,000 100% 77,000 P37,400
completed
+ normal spoilage-discrete 3,500 75% 2,625 b. The unsecured creditor with priority will received
+ abnormal spoilage 5,000 75% 3,750 P3,055.
+ ending work in process 14,500 70% 10,150
Equivalent units production 106,252 c. The fully secured creditor will paid an amount of
P144,952.

d. The partially secured creditor will paid an amount

5. On November 1, 2014, CRC Corporation’s trustees of P119,730.
prepares a statement of affairs with the following
information: Solution: B

-P340,000 cash will be received by the unsecured 6. Aquino and Abunda formed a joint venture to purchase
creditors whose claim totaled P1,360,000. and sell a special type of merchandise. The ventures
agreed to contribute cash of P270,000 each to be used
-X received a 12% note of P124,000 from CRC on in purchasing the merchandise, and to share profits
March 1 2014, secured with machinery with a market and losses equally. They also agreed that each shall
value of P115,000. record his purchases, sales, and expenses in their own
books.
-CRC issued to Y a 12%, 1yr note of P136,000 on
January 1, 2014. Nothing has been pledge to this note. Upon termination of the joint ventures, the following
data are made available:
-Z holds a note of P137,500 on which interest of Aquino Abunda
P7,452 is accrued, secured will equipment with a book Joint Venture P 234,000 Credit P 170,600 debit
value of P153,000. The fair value of the equipment is Inventory taken 10,800 33,750
determined to be P173,250. Expenses paid from
Joint venture cash 5,400 9,900
-CRC stills owes W, its cashier, with salary worth
P12,220.
 How much cash is to be received by Abunda in the final Dollar and 35 Canadian Dollar on December 31, 2015.
settlement? Income earned evenly over the year. And the subsidiary
declared no dividends during its first two years of
a. 267,950 b. 290,225 c. 323,975 d. 280,325 existence.
Solution: B
JV Profit=234,000-170,000+10,800+33,750=107,950 How much is the cumulative translation adjustment for
Investment of Abunda 270,000 2015? (Round-off to 3 decimal places).
Share of NI(1/2) 53, 975 a. P 1,350,000 c. P 975,000
Investment taken (33,750) b. P 1,912,500 d. P 865,000
Cash settlement P290,225 Solution: D
7. Catalyst Paper Company owns a subsidiary in Canada 2014
whose balance sheets in Canadian Dollar of the last Beginning NA 125,000,000*.025= 3,125,000
two years follow (in thousands): Net Income 55,000,000*.024 = 1,320,000
Roll forwarding ending 4,445,000 NA
Dec 31,2014 Dec 31,2015 at closing rate 180,000* .022 = 3,960,000
Assets OCI/CTA, 2014 (485,000)
Cash and cash equivalents C$25,000 C$20,000 2015
Receivables 112,500 137,500 Beginning NA 180,000,000*.022= 3,960,000
Inventory 170,000 180,000 Net Income 22,500,000*.025= 562,500
Property and equipment-net 250,000 225,000 Roll forwarding ending 4,522,500
Total C$557,500 C$562,500 NA at closing rate 202,500,000*.029= 5,872,500
OCI 2015 1,350,000
Liabilities and equity Cumulative translation adjustment 865,000
Accounts payable C$ 65,000 C$ 85,000
Long term debt 312,500 275,000 8. Maple Leaf Foods Company, a local company, bought
Common stock 125,000 125,000 furniture from Ailments Corporation, a US company, for
Retained earnings 55,000 77,500 P35,0000 US Dollars in 2014. Pertinent exchange rates
relating to this transaction are as follows;
Total C$ 557,500 C$ 562,500
Buying rate Selling Rate
Catalyst Paper formed the subsidiary on January 1, Receipt of order P 47.10 P 47.20
2014 when the exchange rate was 40 Canadian Dollar for Date of shipment 47.25 47.45
1 Philippine Peso. The exchange rate for 1 Philippine Balance sheet date 49.50 49.60
peso on December 31,2014 had increased to 45 Canadian Settlement date 49.45 49.50
 What is the foreign exchange gain or loss of Maple value of an ordinary annuity of p1 at 12 % periods is
Leaf Foods Company for 2014? 3.0374. the period of refund will elapsed On January
a. P 78,750 loss c. P 78,750 gain 31, 2015. The franchisor has performed substantially
b. P 75,250 loss d. P 75,250 gain all of the initial services but the operations of the
Solution: B store have yet to start. Collectability of the note is
49.60-47.45 = 2.15 * 35,000 = 75,250 loss reasonable certain.

9. Lurk Company acquired 65% of the share capital of a How much is the unearned franchisee fee?
foreign entity on August 31, 2014. The fair value of a. P 1,661,220 c. P 911,220
the net assets of the foreign entity at that date was b. P 750,000 d. P0
8.4 million yen. This value was 2.64 million higher Solution: A
than the carrying value of the net assets of the DP P 750,000
foreign entity. The excess was due to the increase in PV OF NOTE (300,0003*3.0374) 911,220
value of non-depreciable land. The functional currency TOTAL UNEARNED FEE P 1,661,220
of the entity is Philippine peso. The financial year-
end of the company is December 31,2014. The exchange 11. Petron acquires 80% of Tridel Company’s common stock
rate sat August 31, 2014 and December 31, 2014 were for P320,000 cash. At that date, the non-controlling
yen 2 = Php 1, respectively. interest in Tridel has a fair value of P 140,000.
Also on that date, Tridel reports identifiable ASSETS
What figure for the fair value adjustment should be WITH A BOOK VALU OF p 650,000 AND FAIR VALUE OF p
included in the group financial statements for the 800,000, and it has liabilities with a book value and
year ended December 31, 2014? fair value of P 260,000.
a. P 4,284,800 c. P 2,112,000
b. P 2,678,000 d. p 1,320,000 Gain on bargain purchase arising from acquisition
Solution: C if non-controlling interest is valued on the
1/1.25= .8 * 2,640,000= 2,112,000 proportionate basis:
a. 112,000 c. 100,000
10. On November 30, 2014, Metro Ink Company authorized b. 80,000 d. 94,000
MDS Corp. to operate as a franchise for an initial
franchise fee of P 1,950,000. Of this amount, P Solution: A
750,000 was received upon signing the agreement and
the balance, represented by a note, is due in four AC TOTAL PARENT NCI
annual payments starting November 30, 2015. Present
value of P1 at 12% for 4 periods is 0.6355. Present Co. FV 428,000 320,000 108.000
Fv of net assets (800k- 540,000 432,000 108,000 FV in INA 3,869,000 967,400 4,837,000
260K Goodwill 255,400 63,850 319,250
Gain 112,000 (112,000)
Parent NCI
Parent 1,785,000
12.On January 2, 2014 BDO Company acquired 80% MBTC Div share (210,000)
Company for P4,125,000 cash. On this date, the Sub 975,000
outstanding capital stock and retained earnings of BDO (210,000)
Company and MBTC Company are follows; (127,500/10) 601,800 150,450
BDO MBTC CNI 2,176,800 150,450
Common share P2,250,000 P1,312,000
Share premium 1,500,000 - CS 2,250,000
Retained earnings 5,250,000 3,187,000 APIC 1,500,000
CONSO RE 6,901,800(5,250,000 + 2,176,800-
There was no issuance of capital stock during the a 525,000)
year. Non-controlling interest is initially measured NCINAS 1,129,200(1,031,250 + 150,450 – 52,500)
at fair value. Fair value of the following assets of TOTAL 11,781,000
MBTC exceeded their book values as follows;
inventories, P210,000: property and Equipment (useful 13. Skyline Corporation purchased 95% of the shares of
life, 10 yrs), P127,500. All others assets and Syncrude Company on January 2014. On that date, the
liabilities are fairly valued. Goodwill if any is not book value of Syncrude’s net assets approximated fair
impaired. On December 31, 2014 the two companies value. As a result of the purchase, Skyline
reported the following operating results; recognized P600,000 goodwill.
BDO MBTC
Net income P1,785,000 P 975,000 During 2014, Syncrude sold inventory to Skyline. On
Dividend paid 525,000 262,500 December 31,2014, Syncrude had unrealized profits on
its books of P100,000. By December 31,2015, Skyline
What is the consolidated shareholder’s equity to be sold inventory to Syncrude and had P150,000 of
reported in the consolidated statement of financial unrealized profits left on its books at the end of
position on December 31, 2014? 2015. For 2015, Skyline reported operating income of
a. P10,651,000 c. P7,035,000 P5,000,000, and Syncrude reported net income of
b. P13,500,000 d. P11,781,000 P3,600,00.
Solution: D
Parent NCI Total What is the consolidated income attributable to
FV of bus 4,125,000 1,031,250 5,156,250 shareholders of parent for 2015?
 a. 8,330,000 c. 8,365,000 Allowance for overvaluation of branch inventory
b. 8,330,500 d. 8,550,000 amounted to P67,000 in the home office books. In the
Solution: C home office books, the branch net income (loss) is;
Net income from own operation-popo P5,000,000 a. P 16,000 b. (P5,580) c. (P7,100) d. (P51,000)
Unrealized profit in ending inventory- (150,000) Solution; C
downstream Sales P528,000
Realized net income from own operation- 4,850,000 Cost of sales, unadjusted 389,000
popo Gross profit P 139,000
Adjusted net income from own operation- 3,700,000 Expenses (190,000)
sotto Net loss, per branch books (P51,000)
Net income P 3,600,000 RGP 43,900a
Realized profit in beginning Net loss, per H>O> books P7,100
inventory-upstream 100,000 a. allowance for overvaluation
Consolidated net income P8,550,000 beg. 7,000
Attributable to NCI (3,800,000* 5%) 185,000 shipment 59,400
Attributable parent P8,365,000 ending (23,200)
realized 43,900

14. Matrox Company has a branch in Sury City. Shipments 15. On July 1, 2014, Philip Company purchased 1,000
of merchandise to the branch totaled P297,000 for the shares of Leo Corp. common stock at a cost of P60 per
year, which included a 25% mark-up on cost. share and classified it as an available for sale
The following data summarizing branch operations for security. On October 1, Philip Company purchased an at-
the period ended December 31m 2012; the-money on Leo Corp. at a premium of P 14,000 with a
Sales on account P 407,000 strike price of P100 per share and an expiration date
Sales on cash basis 121,000 of April 2015.
Collections of accounts 330,000
Expenses paid 149,000 Philip Company specifies that only the intrinsic value
Expenses unpaid 41,000 of the option is to be used to measure effectiveness.
Purchase of merchandise for cash 143,000 The following shows the fair value of the hedge item
Inventory on hand, January 1 and the hedging instrument.
(60% from outside purchase) 114,000
Inventory on hand, December 31
(70% from home office) 165,000 April Oct1,201 `Dec31,201 March3,201 April201
Remittances to home office 302,500 2015 4 4 5 5
Leo’s P100 P88 P80 P80
share Taiwanese bank for one year at 105 on July 1, 2014 to
price hedge its net investment in Kilona. The loan was made
Intrinsi 0 12,000 20,000 20,000 when the exchange rate for NT Dollar was P1.55. The
c value loan was denominated in NT Dollar and the current
Time 12,000 8,600 2,120 0 exchange rate at December 31,2014 was P1.50
value
Fair 14,000 20,600 22,120 20,000 The other comprehensive income-translation adjustment
value in 2014 is;
a. 0 b.P34,400 c. P64,400 d. P94,4000

What is the cumulative effect on retained earnings of SOLUTION; B

the hedge and sale? Net asset at closing rate (1,700,000*1.50) 2,550,000
a. P6,000 b.P26,000 c. p40,000 d.P46,000 Net asset roll forward 2,711,000
Solution: B Translation loss 161,000
Intrinsic value 20,000 Share 40% 64,400
Time value 14,000 Forex gain on loans payable(1.55-1.50)*600000 30,000
Net effect of hedge 6,000 OCI-translation adjustment 34,000
Unrealized gain to P/L 20,000
Total RE effect 26,000 17. Vista Corporation, a Philippine importer, purchase
merchandise from Yogen Company at Thailand for 300,000
16. Walmart Corporation of Manila paid P960,000 for a 40% baht on March 1, 2014, when spot rate for a Baht was
interest in Kilona Corporation of Taiwan on January P1,630. The accounts payable denominated in Baht was
1,2014, when Kilona’s net asset totaled 1,500,000 NT not due until May 30,2014, so Vista immediately e
dollar and the exchange rate for NT Dollar was P1.60. A ntered into a 90 day forward contract to hedge the
summary of changes in Sun’s net assets during 2013 is transaction against exchange rate changes. The contract
as follows; was made at a forward exchange rate of P1,650. Vista
NT dollar Exchange settled the forward contract and the accounts payable
Net assets, January 1,500,000 1.60 on May 30, when the spot rate for Baht was P1,600.
Net income for 2014 300,000 1.55
Dividends paid for 2014 100,000 1.54 On the settlement of the forward contract on May
30,2014, Vista should record a forex gain(loss) of
a. P15,000 b.(6,000) c. P6,000 d.(P15,000)
Walmart Corporation anticipated a strengthening of the
Philippine peso against the NT Dollar during the last Solution:D
half 2014, and it borrowed 600,000 NT Dollar from a (0.5) * 300,000 = (15,000)
 Sales 385,000
18. Rockford Company and Alaska Corp. were combined on Unrealized gross profit-2014 54,000
September 1,2014 in a business combination and Alaska
Corp. was dissolved and liquidated. For the year, Additional information: as of December 31, 2014
2014, the companies had the following net income. Installment accounts receivable-2013 as of December
31, 2014 P135,000
Rockford Company (January-September 1) P2,400,000 Inventory of new and repossessed
Rockford Company (septembner1- December 31) 1,000,000 Merchandise as of December 31,2015 95,000
Alaska Corp. (January-September 1) 1,600,000 Gross profit percentage on regular
Alaska Corp. (septembner1- December 31) 800,000 Sales during the year 30%

Rockford Company, the surviving company, will report Repossession was made during the year. It was a 2014
income for 2014 of sale, and the corresponding uncollected account at
a. P2,400,00 c.P2,400,00 the time of repossession was 7,800.
b. P3,400,000 d. P5,800,000
The total realized gross profit in 2015, net of loss
Solution: C on repossession is
Net income of Rockford Co. a. P130,380 c.P244,200
(2,400,000+1,000,000) 3,400,000 b. P201,000 d.P245,880
Net income of Alaska from date of
acquisition to end of year 800,000 Solution: C
total to be reported 4,200,000 Realized gross profit on regular
Sales (385,000*30%) 115,500
19. the following selected accounts appeared in the trial RPG on 2014 installment sales =
balance of Macy Sales as of December 31,2015. 40% (135,000-15,000-7,800) 44,880
RPG on 2015 installment sales
Debit Credit 38% (425,000-200,000) 85,500
Installment accounts Loss on repossession
Receivable – 2014 P15,000 Unpaid balance 7,800
Installment accounts DGP (7,800*40%) (3,120)
receivable -2015 200,000 Unrecovered cost 4,680
Inventory, December 31,2014 70,000 Value of repossession
Purchases 555,000 Merchandise (3,000) (1,680)
Repossessions 3,000 Total RPG, net loss on
Installment sales P425,000 Repossession 244,200
 2. Accounts receivable of P80,000 are collected in
Computation of gross profit rate full. N accepts accounts receivable with a face
2014 = 54,000/135,000= 40% value and fair value of P30,000 in partial
2015 = 161,500/425,000= 38% satisfaction of his capital balance. The remaining
Installment sales 425,000 accounts receivable are written off as
Less: cost of installment sales uncollectible.
MI, January 1 70,000 3. Furniture with a book value of P250,000is sold for
Purchases 555,000 P150,000
Repossessions 3,000 4. Furniture with a book value of P40,000 and an
MI, December 31 (95,000) agreed upon fair value of P10,000 is taken by J in
Cost of regular sales partial settlement of his capital balance. The
(335,000*70%) (269,500) (263,500) remaining furniture and fixtures are donated to
Gross profit on installment sales 161,500 Goodwill Industries.
5. Liquidation expenses of P30,000 are paid.
20. E.J. and N agree to liquidate their consulting
6. Available cash is distributed to partners on August
practice as soon as possible after the close of
31.
business on July 31, 2014. The trial balance on that
shows the following account balances.
How much of J’s equity was recovered from the
partnership liquidation?
Cash P130,000
a. P25,000 c. P94,000
Accounts receivables 120,000
Furniture and fixtures 350,000 b. P51,000 d. none
P600,000
Accounts payable P60,000 Solution: C
Loan to E 40,000 Cash available/distributed to partners:
E, Capital 200,000 Beginning cash P130,000
J, Capital 150,000 Accounts payable paid (60,000)
N, Capital 150,000 Accounts receivable collected 80,000
600,000 Furniture and fixtures sold 150,000
Liquidation expenses paid (30,000)
The partnership share profits and losses 50%, 20% and Cash distributed to partners P270,000
30% to E, J, and N, respectively, after N is allowed
a monthly salary of P40,000. E J N total
August transactions and events are as follows: Capital balance P200,000 150,00 150,000 P500,000
Loan 40,000 40,000
1. The accounts payable are paid.
 Accounts receivable (30,000 (30,000) 4. Remaining cash balances are distributed to
Furniture and Fixtures (10,000) (10,000) creditors and partners.
Net equity 240,000 140,000 120,000 500,000
Liquidation loss (115,000) (46,000) (69,000)(230,000) How much cash X should receive?
Cash distribution P 94,000 a. P26,250 c. P180,000
b. P31,875 d. P42,000
21. The X. Y. and Z Partnership has not been successful.
Hence, the partners have sadly concluded that Solution: A
operations must be terminated and their partnership X Y Z TOTAL
liquidated. Profits and losses are shared as follows: TE 240 300 60 600
X, 45%; Y, 35%; and Z, 20%. As the accountant placed LOSS 198 154 88 440
in charge of this partnership, you have responsibility CAFD 42 146 (28) 160
for the liquidation and distribution of assets. When AL (15,750) (12,250) 28
you assume your responsibilities, the partnership DIST. 26,250 133,750 0 160
balance sheet is as follows:
Items 22 and 23 are based on the following:
Cash P180,000 liabilities P120,000 Max and Jasper are partners with capital balances of
Other assets 540,000 loan from X 180,000 P32,000 and P68,000,respectively, as of July 1,2014.
X, Capital 60,000 Max has a 30% interest in profits and losses. All
Y, Capital 300,000 assets of partnership are fair market value except as
Z, Capital 60,000 follows:
P720,000 P720,000
Book Value Market Value
During the first two months of your duties, the Equipment P150,000 P142,000
following events occur: Inventory 43,000 50,000
1. Assets having a book value of P400,000 are sold for Land 60,000 105,000
P120,000 cash Building P274,000 250,000
2. Previously unrecorded liabilities of P10,000 are
recognized. The partnership has decided to admit Vincent and Sam
3. Before distributing available cash balances to as new partners. Vincent contributes cash of P55,000
creditors and partners, you conclude that a cash for a 20% interest in capital and a 30% interest in
reserve of P10,000 should be set aside for future profits and losses. Sam contributes cash of P10,000
potential expenses. and equipment with a fair market value of P50,000 for
a 25% interest in capital and 35% interest in profits
 and losses. Sam is also bringing special expertise and the partnership in full time. P is given a salary of
client contacts to the new partnership. P5,000 a month; an interest of 5% the starting capital
and a bonus of net profit before the salary, interest
22. The capital balance of Max after Vincent and Sam’s and the bonus.
admission under the bonus method is:
The condensed profit and loss statement of the year
a. P40,775 c. P38,000 ended December 31,2014 is as follows;
b. P34,775 d. P70,500 Net sales P875,000
Cost of sales 700,000
Solution: A Gross profit on sales P175,000
BV VALUATION BONUS BALANCE Expenses (including
M 32,000 6,000 2,775 40,775 the salary, interest and
W 68,000 14,000 6,475 88,745 bonus) 143,000
K 55,000 - (8,000) 47,000 net profit P32,0000
S 60,000 - (1,250) 58,750
TOTAL 215,000 20,000 235,000 The bonus of P in 2014 is
a. P13,304.35 c. P15,300
b. P18,000 d. P20,700
23. the method (bonus or goodwill) advantageous to
Vincent ans Sam and total amount of advantage is: Solution: B
a. Bonus method for an advantage of P2,055
b. bonus method for an advantage of P4,111. 25. Congestions have always been a way of life most
c. bonus method for an advantage of P5,944. especially in Metro Manila. One way to decongest
d. bonus method for an advantage of P12,750. traffic and minimize use of gasoline is to phase out
the internationally known jeepneys as well as the use
of dilapidated, smoke-belching and fully depreciated
Solution: B buses. To partially solve the problem as well as to
Implied GW (255,000-235,000) 20,555 motivated car owners to use public transportation, an
*(45%-65%) 20% underground monorail system similar to that of
Adv. Of bonus 4,111 Hongkong was the solution. The system covered the
stretch of the famous Edsa, from Roxas Boulevard to
24.On January 2, 1014, B and P formed a partnership. B Bonifacio Monument and would go as far as the area of
contributed capital of P175,000 and P, P25,000. They Malabon as well as Navotas, a thickly populated
agreed to share profits and losses 80% and 20%, fishermen’s village. The project covers several
respectively. P is the general manager and works in stages and was awarded to different contractors here
and abroad. Competitive bids were held for stage one (120/336*64) (22.875)
of the project. The bids are; Gross profit this year 2014 P41.143

Northern City Construction P560 billion 26. On April 1, 2014 CDE Enterprises entered into a
Hongkong Systems 392 billion franchise agreement with RRV Manufacturing Company
JJ Ram Construction Company 400 billion to sell their products. The agreement provides for
an initial franchise fee of P 4,375,000, payable as
A project that undergoes competitive bid is normally follows: P1,225,000 to be paid upon signing of the
awarded to the lowest bidder. However, the government contract, and the balance in five equal payments
reserves the right to reject any and all bids after a every December 31, starting December 31,2014. CDE
careful review of the track record of the bidders. signs a 10% interest-bearing note for the balance.
Even though JJ Ram Construction Company had the The agreement further provides that the franchise
second lowest bid. Stage one of the project was must pay a continuing franchise fee equal to 5%of
awarded to them. The contract price was P400 billion its monthly gross sales. On September 30, the
pesos which were covered by a two-year construction franchisor completed the initial services required
contract. The following data were available from the in the contract at a cost of P2,756,250, and
records for the years 2013 and 2014. incurred indirect costs of P180,000. The franchisee
2013 2014 commenced business operations on October 2, 2014.
(in billion pesos) The gross sales reported by CDE are October sales,
Cost incurred P120 P216 P370,000;November sales, P423,500; and December
Progress billings 100 300 sales, P516,500. The first installment payment was
Cash collections on billings 96 304 made on due date.
Estimated costs to complete 216
Assuming collection of the note reasonably assured,
How much is the income from construction in 2014, in its income statement for the year ended December
using the cost to cost percentage of completion 31, 2014 the reported net income is:
method? a. P808,100 c. P988,100
a. P41,143 c. P64billion b. P886,850 d. P686,350
b. P22.875billion d. P161.143billion Solution: A
GRP :( P4,375,000-2,756,250)/4,375,000) 37%
Solution: A RGP on initial Franchise Fee
Contract Price P400 billion (1,225,999+630,000)*37% P686,350
Total actual cost (120+216) 336 billion Continuing Franchise Fee
Actual total gross profit P 64 (370,000+423,500+516,500)*5% 65,500
Less: Gross profit prior year Interest Income (3,150,000*10%)*9/12 236,250
 Expenses (180,000) 27. Determine the total realized profit in branch
Net Income P 808,100 inventories for 2014.
a. 938,000 b. 93,000 c. 1,031,000 d.838,000
Question 27 and 28 are based on the following:
WALMAR Grocery has three all-night Grocery stores Solution: A
located in South America. Each store has a branch Unrealized profit 1,031,000
manager with authority to accept inventory items at Less unrealized profit ending inventories
home office cost plus mark-up or to purchase from Venezuela (264,00*10%/110%) 24,000
outside wholesalers, at her discretion. Brazil (297,000*10%/110%) 27,000
Argentina (462,000*10%/110%) 42,000 93,000
Inventories at December 31,2014 were as follows: Realized profit on branch inventories 938,000
Home office P1,109,000 cost Mark-up rate:
Venezuela branch 264,000 transfer price Shipments from home office Venezuela 3,300,000
Brazil branch 297,000 transfer price Shipments to Venezuela to home office 3,000,000
Argentina branch 462,000 transfer price Mark-up 300,000
Mark-up rate(300,000/3,000,000)=10% cost
Partial trial balance information for WALMART Grocery
and its branches at December 31,2014 includes the 28. Determine the correct value of WALMART Grocery
following accounts and amounts: inventory at December 31,2014.
Home Venezuela Brazil Argentina a. 930,000 c. 1,938,000
office branch branch branch b. 2,039,000 d. 838,000
Inventori 609,000 374,000 330,000 187,000
es, Solution: B
Jan1,2014 Correct ending inventory of WALMART Grocery as of
Purchases 10,000,000 December 31,2014:
Shipments 3,300,000 2,750,00 4,400,000 Home office P1,109,000
from home 0 Venezuela (264,000/110%) 240,000
office Brazil (297,000/110%) 270,000
Argentina (462,000/110%) 420,000 P2,039,000

Unrealized profit in branch inventories 1,031,000 29. Coleen, a private limited company, has acquired 100%
Shipments to Venezuela branch 3,000,000 of Carlo, a private limited company, on January
Shipments to Brazil Branch 2,500,000 1,2014. The fair value of the purchases consideration
Shipments to Argentina branch 4,000,000 was 10 million ordinary shares of P1 of Coleen and
the fair value of the net assets acquired was P7
 million. At the time of the acquisition, the value of 30. What will Robinson record as the acquisition price on
the ordinary shares of Coleen (P11 million)and the January 1,2014?
net assets of Carlo (7.5 million) on January 1,2014, a. P400,000 c. P409,142
were finally determined on November 30,2014. However, b. P403,142 d. P416,500
the directors of Coleen have seen the value of the
company decline since January 1, 2014, and as of Solution: B
February 1,2015, wish to change the value of the Fv of consideration paid/payable
purchase consideration to P9 million. What value (400,000+3,142)= 403,142
should be placed on the purchase consideration and
assets of Carlo as at the date of acquisition? 31. Assuming Rose generates cash flow from operations of
a. Purchase consideration P10 million, net assets P27,200 in 2014, how will Robinson record the P16,500
value P7 million. payment of cash on April 15,2015?
b. Purchase consideration P11 million, net assets a. Debit goodwill and Credit Cash, P16,500.
value P7 million. b. Debit Investment in Subsidiary and Credit Cash ,
c. Purchase consideration P9 million, net assets P16,500.
value P7.5 million. c. Debit contingent performance obligation P16,500
d. Purchases consideration P11 million, net asset and Credit cash P16,500.
value P7.5 million. d. Debit Contingent performance obligation P3,142,
Solution: D. debit loss from contingent performance obligation
The provisional valuation on January 1,2014 should be P13,358 and Credit cash P16,500.
finalized within 12 months (measurement period) .
and on November 31, 2014 it was finally determined Solution: D
to be worth 11M and 7.5M respectively.
Items 30-31 are based on the following information: 32. Rachel Company recognizes construction revenue and
Robinson, Inc. acquires 100% of the voting stock of Rose expenses using the percentage of completion method.
Company on January 1,2014 for P400,000cash. A During 2014, a single long term project was begun
contingent payment of P16,500 will be paid on April which continued through 1308. Information on the
15,2015 if Rose generates cash flows from operations project was as follows:
of P27,000 or more in the next year. Robinson 2014 2015
estimates that there is a 20% probability that Rose Accounts Receivable from
will generate at least P27,000 next year and uses an Construction contract P200,000 P600,000
interest rate of 5% to incorporate the time value of Construction expenses 210,000 384,000
money. The fair value of P16,500 at 5% using a Construction in progress 244,000 728,000
probability weighted approach is P3,142. Partial billings on contract 200,000 840,000
 The profit recognize from the long term construction a. P780,000-liability P780,000-liability
contract should amount to: b. 780,000-asset 780,000-asset
2014 2015 c. 60,000-liability 60,000-liability
a. P44,000 P456,000 d. 636,000-liability 636,000-liability
b. 44,000 200,000
c. 34,000 256,000 Solution: A
d. 34,000 100,000 2014 2015
CIP 4,680 7,920
Solution: D PB 5,280 8,700
2014 2015 CA(CL) (600) (780)
CIP 244 728
COST 210 594 34. From the following data from the records of DEF
CP 34 134 Partnership:
CP.PY 0 34 DEF Partnership
CP.CY 34 100 Balance Sheet
December 31, 2014
33. GMA Company entered into a construction agreement in Cash P 2,000
2014 that called for a contract price of P9,600,000. Other non cash assets 28,000
At the beginning of 2015, a change order increases Total P30,000
the initial contract price by P480,000. In relation Liabilities and Capital
to the project, the following data were obtained. Liabilities P5,000
D, loan 2,500
D, Capital 12,500
2014 2015 E, Capital 7,000
Costs incurred to date P4,920,000 P8,640,000 F, Capital 3,000
Estimated costs to complete 4,920,000 2,160,000 Total P30,000
Billings made to date 5,280,000 8,700,000
Collections made to date 4,920,000 8,700,000 Profit and loss ratio is 3:2:1 for D,E, and F
respectively. The other non cash assets were realized
Compute the amount of construction in progress(net)- due as follows:
from customers or progress billings (net)-due to
customers for the year 2015: Date Cash Receive Book Value
January 2015 P6,500 P9,000
Percentage of completion Cost of recovery method February 2015 3,500 7,700
Method of construction accounting
 March 2015 12,500 11,300
Solution: B
Cash is distributed as other non cash assets BNI Per Branch P20,000
realized: total cash received by E is? R. mark up (110-15) 95,000
a. O b. 1,500 c. 2,000 d. 5,000 Rent expense (6,000)
Adj. BNI 109,000
Solution: D
D E F TOTAL 36. The unsecured creditors of Grand Boulevard filed
15,000 7,000 3,000 25,000 petition on July 1,2015, to force Dawn into
(3,000) (2,000) (1,000) (6,000) bankruptcy. The court order for relief was granted on
12,000 5,000 2,000 19,000 July 10 at which time an interim trustee was
appointed to supervise liquidation of the state. A
35. Following is the income statement of ABS Branch in listing of assets and liabilities of Dawn Corporation
Davao City Company, for the six months period ending as July 10, 2015, along with estimated realizable
June 30,2015: value is as follows:
Sales P620,000
Cost of Sales: Book Estimated
Shipments from home Office P550,000 Value Realized
Purchase 50,000 Value
Total 600,000 Asset
Inventory, June 30,2015: Cash P80,000 P80,000
From Home Office 75,000 Accounts Receivable-net 210,000 160,000
From purchases 10,000 P515,000 Inventories 200,000 210,000
Gross Margin P105,000 Equipment-net 150,000 60,000
Expenses 85,000 Land and building-net 250,000 140,000
Net income for the month P20,000 Intangible assets 900,000 650,000
Equities
The Home Office ships merchandise to and bills the Accounts Payable P400,000
Branch Office at 125% of cost. The rent of the Branch Notes Payable 100,000
Office for six months at a monthly rate of P1,000 was Wages Payable 24,000
paid by the home. The Home Office net profit from its Taxes Payable 76,000
Branch Office in Cebu City for six months ending June Mortgage payable P200,000 205,000
30, 2015 is: plus P5,000 unpaid
a. P14,000 c. P125,000 interest to July 10
b. P109,000 d. P139,000 Capital stock 300,000
Retained earnings deficit (205,000) Sales 200,000 120,000
P900,000 Shipments to branch 90,000 -
Profit from branch 2,300 -
Total credits P382,500 P150,500

Solution: C
The total NRV of assets will be used to pay Inventories on hand at December 31, 2015 at the main
creditors as there is a deficiency. store and branch are P 3,000 and P1,800,
respectively. The December 31,2014 branch inventory
37. Aristotle company operates retail hobby shops from includes merchandise purchased from outsiders of
the main store and a branch store. Merchandise is P300, and the December 31, 2015 branch inventory
shipped from the main store and to the branch at an includes P150 of merchandise purchased from
arbitrary 10% markup. Trial balances of the main outsiders. The combined cost of goods sold amounted
store and branch as of December 31,2015 are as to:
follows: a. P243,150 c. P252,200
b. P252,150 d.P261,200
Main Store Branch
Debits Solution: B
Cash P1,500 P1,000 Beg. Inv. (3,500+2,500-.2) 5,800
Accounts receivable 200 - Purchase 251,000
Inventory- December 31,2014 3,500 2,500 EI (3,000+1,800-150) (4,650)
Building-net 60,000 18,000 COS 252,150
Equipment-net 30,000 12,000
Branch Store 32,300 - 38. REH and MFT entered into a partnership as of March
Purchases 240,000 11,000 1, 2015 by investing P125,000 and P
Shipments from Home Office - 99,000 75,000,respectively. They agreed that REH, as the
Other Expenses 15,000 7,000 managing partner, was to receive a salary of P30,000
Total debits P382,000 P150,500 per year and a bonus computed at 10% of the net
profit after adjustment for the salary; the balance
Credits of the profit was to be distributed in the ratio of
Accounts payable P15,000 P500 their original capital balances. On December 31,2015,
Unrealized inventory profit 9,200 - account balances were as follows:
Main store - 30,000
Capital stock 50,000 - Cash P70,000 Account payable P60,000
Retained earnings 16,000 - Account 67,000 REH, Capital 125,000
receivable End 139,540 48,860
Fur. And 45,000 MFT, Capital 75,000
fixtures 39.The after closing balances of Carter Corporation’s
Sales return 5,000 REH, drawing (20,000) home office and its branch at January 1,2015 were as
Purchases 196,000 MFT, drawing (30,000) follows:
Operating 60,000 Sales 233,000
expenses Home Office Branch
Cash P7,000 P2,000
Accounts 10,000 3,500
Inventories on December 31, 2015 were as follows; Receivable-net
supplies, P2,500; merchandise, P73,000. Prepaid Inventory 15,000 5,500
insurance was P950 while accrued expenses were Plant assets –net 45,000 20,000
P1,550. Depreciation rate was 20% per year. Branch 28,000 -
Total assets P105,000 P31,000
The partner’s capital balances on December 31, 2015,
after closing net profit and drawing accounts were: Accounts payable P4,500 P2,500
REH MFT Other liabilities 3,000 500
a. P 135,940 p47,960 Unrealized 500 -
b. P139,540 p49,860 profit-branch
c. P139,680 p48,680 inventory
d. P142,350 p47,670 Home Office - 28,000
Capital stock 80,000 -
Solution: B Retained earnings 17,000 -
NI 233,000-196,000-60,000+75,500+950-1,550-5,000 Total equities P105,000 P31,000
-7,500 = 39,400
REH MFT TOTAL
25,000 - 25,000 A summary of the operations of the home office and
1,440 1,440 branch for 2010 follows:
8,100 4,860 12,960 1) Home office sales: P100,000, including P33,000 to
34,540 4,860 39,400 the branch. A standard 10% markup on cost applies
(20,000) (30,000) (50,000) to all sales to the branch. Branch sales to its
customers totaled P50,000.
2) Purchases from outside entities: home office,
14,540 (25,140) P50,000 ; branch P7,000.
Beg. 125,000 75,000
 3) Collections from sales: home office of 1% of the purchase price the shares were incurred
P98,000(including P30,000 from branch); branch by SME A and SME B.
collections, P51,000.
4) Payments on account: home office, P51,500; branch On December 31,2013 entity X declared and paid
P4,000. dividends of P1,000 for the year ended 2012. On
5) Operating expenses paid: home office, P20,000; December 31,2014 entity Y declared a dividend of
branch P6,000. P8,000 for the year ended 2014. The dividend declared
6) Depreciating on plant assets: home office, P4,000; by entity Y was paid in 2015.
branch P1,000.
For the year ended December 31,2014, entities X and Y
7) Home office operating expenses allocated to the
recognized profit of P5,000 and P18,000, respectively.
branch, P2,000.
However, entity Z recognized a loss of P20,000 for
8) At December 31,2015, the home office inventory is
that year. Using appropriate valuation techniques, the
P11,000 and the branch inventory is P6,000 of which ventures determined the fair value of each of their
P1,050 was acquired from outside suppliers.
investments in entities X, Y and Z at December 31,2014
as P13,000, P29,000 and P15,000 respectively. Costs to
The combined net income amounted to:
sell are estimated at 5% of the fair value of the
a. 0 b. P4,550 c. P21,000 d. P25,550 investments. Neither SME A nor SME B prepares
consolidated financial statements because they do not
Solution: D have any subsidiaries.
Sales 117,000
COS Which of the following statement is correct?
PUR 57,000 a. The loss to be presented by A using model is 7,900
Beg.Inv. 20,000
in entity Y.
EI (16,000) 60,450
b. The income to be presented by entity A using fair
GP 56,550
value model is P3,150.
OE(20+6+5) 31,000
CNI 25,550 c. No income to be reported if the cost model is being
used by B in entity X.
40. On January 1, 2014 SME A and SME B each acquired 25% d. The investment cost using equity model is P15,150
of the equity, X, Y and Z for P10,000, P15,000 and to be presented in entity B at the end of the year.
P28,000 respectively. SME A and SME B have joint Solution : C under cost method, INC is limited to
control over the strategic financial and operating dividends received from investee.
decisions of entities X, Y and Z. transaction costs
41. On January 2, 2013, Honda sold a car to Ciara for b. P2,326,000 d. P2,406,000
P1,050,000. On this date, the car cost P735,000.
Ciara paid P150,000 as a down payment and signed Solution : A
interest bearing note at 10%. The note was payable in (50,000*2,914) =
three annual installments of P300,000 beginning
January 1, 2014. Ciara made a timely payment for the 43. On July 1,2014, Burmington Company purchases 80% of
first installment on January 1,2014 of P390,000 which the outstanding shares of Bluenotes Company at a cost
included interest of P90,000 to date of payment, of P4,000,000. On that date, Bluenotes had P2,500,000
Honda uses the installment method of accounting. In of capital stock and P3,500,000 of retained earnings.
its December 31,2014 financial statements, what For 2014, Burmington had income of P1,400,000 from
amount should Honda report as realized gross profit its separate operations and paid dividends of
and deferred gross profit? P750,000. For the year ended December 31, 2014,
a. P135,000; P180,000 c. P135,000; P153,000 Bluenotes reported income of P325,000 and paid
b. P90,000; P180,000 d. P90,000; P135,000 dividends of P150,000. All the assets and liabilities
of Bluenotes have book values equal to their
Solution :B respective fair market values. NCI is valued at the
RGP = 300,000 * 30% = 90,000 proportionate basis. Assume income was earned evenly
DGP = 600,000* 30% = 180,000 throughout the year expect for the intercompany
transaction on October 1. On October 1,2014
42. Cyril, Inc. granted a franchise to Hopeless Romantic Burmington purchased machinery from Bluenotes for
for the Manila area. The franchise was to pay a P500,000. The book value of the machinery on that
franchise fee of P250,000 payable in five equal date was P600,000. The loss of P100,000 is reflected
annual installments starting with the payment upon in the income of Bluenotes indicated above. The
signing of the agreement. The franchise was to pay machinery is expected to have a successful life of 5
monthly 3% of gross sales of the preceding month. years from the date of sale. In December 31, 2014
Should the operations of the outlet prove to be consolidated financial statement, how much is the
unprofitable, the franchise may be cancelled with consolidated net income attributed to the parent
whatever obligations owing Cyril, Inc. In connection company?
with the P250,000 franchise fee waived. The a. P1,606,000 c. P2,366,000
prevailing interest rate is 14%. The first year b. P2,326,000 d. P2,406,000
generated a gross sale of P120,000. What is the
amount of unearned franchise fee after the first year Solution : D
of operations (round off the PV factor to 3 decimal PNI 1,400,000
places)? SNI (350*6/12) 175,000
a. P1,606,000 c. P2,366,000 UL 100,000
 RL (5,000) Cost of direct material used P200,000
MINI/NCI.NI(450*6/12+95)20% (64,000) Cost of direct labor, including site
Gain on Acq (4,000,000-4,800,000) 800,000 Supervision of P50,000 150,000
CNI-TO CI 2,406,000 Cost of indirect materials used 55,000
Cost incurred in obtaining the
44. On January 1,2014 entities A and B each acquired 30% Contract previously written off 70,000
of the ordinary shares that carry voting rights at a Depreciation of plant and equipment
general meeting of shareholders of entity Z for Used in the contract 120,000
P3,000,000. Entities A and B immediately agreed to Payroll of design and technical
share control over entity Z, for the year ended Department allocated to the contract 80,000
December 31,2014, entity Z recognized a profit of Insurance costs(2/3 for other contract)180,000
P4,000,000. On December 31,2014 entity Z declared and Costs of contracted research and
paid a dividend of P1,500,000 for the year 2014. At Development activities 105,000
December 31,2014, the fair value each venture’s Depreciation of idle plant and
investments in entity Z is P4,250,000. However, there Equipment not used on a particular
is no published price quotation for entity Z. In Contract 60,000
2014, entity A purchase goods for P1,000,000 from Selling costs 45,000
entity Z. At December 31,2014, P600,000 of the goods General and administrative expenses
of the goods purchase were in entity A’s inventories. Specifically included under the
Entity Z sells goods at a 50% mark up on cost. Under Terms of the contract 30,000
IFRS 11, what is the income of entity A from the Borrowing cost incurred during the
joint venture? Construction period 130,000
a. P1,000,000 c. P1,140,000 Advances made to subcontractors 100,000
b. P1,060,000 d. P1,200,000 a. P104,335 c. P125,195
b. P111,055 d. P134,610
Solution: C
Share in NI 1,200,000 Solution: C
UP (200T*30%) (60,000) Total Costs Inc. to date 930,000 = 35.77%
Net Inc. 1,140,000 Total Est. Costs 2,600,000
CR (2,950*35.8) 1,055,215
45. On July 1,2014, Stonerich Construction Corp., COST 930,000
contracted to build an office building for Gerry’s CP 125,215
for a total contract price of P2,950,000. Estimated 46. Johnson and Johnson Company uses a job order costing
total contract costs are P2,600,000. Costs incurred system and the following information is available
to date are as follows:
 from its records. The company has three jobs in Received from Dept 1 30,000
process: #6, #9 and #13. Completed and transferred 25,000
Raw material used 120,000 In Process, April 30(60% completed) 6,000
Direct labor per hour 8.50 Production Costs:
Overhead applied based on April 1 April 30
Direct labor cost 120% Received from Dept 1 P16,300 P89,100
Materials 3,800 67,500
Direct material was requisitioned as follows for Conversion cost 1,940 81,000
each job respectively; 30%, 25%, and 25%; the
balance of the requisition was considered indirect. Materials are added at the start of the process, and
Direct labor hours per job are 2,500; 3,100; and losses normally occur during the early stage of the
4,200; respectively. Indirect labor is P33,000. operation. Using the Average Costing Method, what is
Other actual overhead costs totaled P36,000. If Job the cost of the ending work in process inventory?
#13 is completed and transferred, what is the a. 44,640 c. 45,600
balance in Work in Process Inventory at the end of b. 45,460 d. 46,000
the period if overhead is applied at the end of the
period? Solution: A
a. P96,700 c. P139,540 CPD M CC
b. P99,020 d. P170,720 FT 25 25 25
IPE 6 6 3.6
Solution: D 31 31 28.6
RM 96,000
DL (9,800*8.5) 83,300 CPD 105,400 3.4
OH APPLIED (120%OF DL) 99,960 MAT 71,300 2.3
TMC 279,260 CC 82,940 2.9
CGM (Job 13) 259,640 8.6
(30,000+35,700+42,840) 108,540 FT 215,000
WIP end 170,720 IPE 44,640

47. Marley Manufacturing Company makes a single product 48. On January 1,2013, a parent entity applying PFRS for
in two departments. The production date for SME, (whose functional currency is CU) made an FCU
Department 2 for April 2013 follows: 20,000 loan to a foreign subsidiary (whose
functional currency is FCU). The parent has informed
Quantities: the subsidiary that will not demand repayment and
In Process, April 1,(40% completed) 4,000units the subsidiary does not expect to repay the loan.
 The amortized cost of the loan at each reporting 50. On June 30,2014, a voluntary health and welfare
date is FCU 20,000. organization received pledges from donors amounting
to P50,000. The donors did not place any time or use
The exchange rates are as follows: restrictions on the amount pledge. It was estimated
 January 2013: CU1 = FCU 2 that 10% of the pledges would not be collected.
 December 31,2013: CU1 = FCU 2.1
In preparing the consolidated financial statements, How should the voluntary health and welfare
what is the entity for the consolidation adjustment organization report these pledges on its financial
related to the exchange difference? statements prepared at the end of its fiscal year,
June 30,2014?
a. Other comprehensive income CU 476
Profit or loss-exchange differences CU 476
a. As fund balance for P45,000
b. Profit or loss-exchange differences CU 476
Long term receivable CU 476 b. As contribution revenue-unrestricted for P45,000
c. Long term payable CU 2,000 c. As contribution revenue-unrestricted for P50,000
Other comprehensive income CU 2,000 d. As fund balance-unrestricted for P50,000
d. No entry
Solution: B
Solution: A

49. ON April 6,2013 Agency DEP ED transfers cash of

P20,000,000 to DPWH for a school building. The
project was completed by DPWH on September 5,2013.
What is the entry of Agency DEP ED to record the
completion of the school building?
a. Building 20,000,000
Cash-NT-MDS 20,000,000
b. Building 20,000,000
Due from NG- DPWH 20,000,000
c. Building 20,000,000
Cash in bank- check disbursement 20,000,000
d. No entry

Solution: B