On January 1, 2018, Philcorp Acquired 8,000 of the Outstanding

question 57

Essay

On January 1, 2018, Philcorp acquired 8,000 of the outstanding 10,000 shares of Anderco by issuing its own shares with a market value of $400,000. On June 30, 2019, Anderco issued an additional 2,000 shares for cash consideration of $60 per share, none of which were acquired by Philcorp. Immediately before the issue, the shareholders' equity of Anderco amounted to $500,000 and the unamortized purchase discrepancy was $65,000. Philcorp uses the equity method to record its investment in Anderco.
Required:
What gain or loss will appear in the consolidated financial statements of Philcorp and its subsidiary Anderco as a result of this transaction?

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Definitions:

Medical Costs

The expenses associated with healthcare services, including diagnosis, treatment, medication, and hospitalization.

Chronic Conditions

Long-lasting medical conditions that are persistent and have effects that can be controlled but not necessarily cured.

Health Care Outcomes

The results of healthcare interventions, measured by factors like patient satisfaction, health improvements, and mortality rates.

Expenditures

The total amount of money spent on goods, services, and various needs or activities.