19. On January 5, 2020, Purpose Corporation purchased 70% of Showtime Company's P10 par ordinary shares for P900,000. On this date, the carrying amount of Showtime's net assets was P1,000,000. The fair value of identifiable net assets and liabilities of Showtime were the same as the carrying amount except for equipment, which is P200,000 in excess of carrying amount. For the year ended December 31, 2020, Showtime had a net income of P150,000 and paid cash dividend of P63,000 to Purpose. Excess attributable to equipment is amortized over 10 years.

19. On January 5, 2020, Purpose Corporation purchased 70% of Showtime Company's P10 par ordinary shares for P900,000. On this date, the carrying amount of Showtime's net assets was P1,000,000. The fair value of identifiable net assets and liabilities of Showtime were the same as the carrying amount except for equipment, which is P200,000 in excess of carrying amount. For the year ended December 31, 2020, Showtime had a net income of P150,000 and paid cash dividend of P63,000 to Purpose. Excess attributable to equipment is amortized over 10 years.

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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Question

100%

In December 31, 2020 consolidated statements, non-controlling interest should be reported at:

a. P397,714
b. P380,614
c. P372,000
d. P345,500

19. On January 5, 2020, Purpose Corporation purchased 70% of Showtime Company's P10
par ordinary shares for P900,000. On this date, the carrying amount of Showtime's net
assets was P1,000,000. The fair value of identifiable net assets and liabilities of Showtime
were the same as the carrying amount except for equipment, which is P200,000 in excess
of carrying amount. For the year ended December 31, 2020, Showtime had a net income
of P150,000 and paid cash dividend of P63,000 to Purpose. Excess attributable to
equipment is amortized over 10 years.

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