2, Apple Company acquired 85% of outstanding shares of Samsung Corp. The consideration transferred includes cash payment of P2,000,000 and issuance of 50,000 shares with a market price of P45 per share. The book value of Samsung Corp.’s identifiable net assets approximate its fair value, except for the following: Merchandise inventory’s fair value is lower than the book balance by 150,000. Equipment-A, with 2 years remaining useful life, costing P300,000 is understated by P50,000. Land with a fair value of P500,000 is recognized in the books amounting to P350,000.
On January 1, 2022, Apple Company acquired 85% of outstanding shares of Samsung Corp. The consideration transferred includes cash payment of P2,000,000 and issuance of 50,000 shares with a market price of P45 per share.
The book value of Samsung Corp.’s identifiable net assets approximate its fair value, except for the following:
- Merchandise inventory’s fair value is lower than the book balance by 150,000.
- Equipment-A, with 2 years remaining useful life, costing P300,000 is understated by P50,000.
- Land with a fair value of P500,000 is recognized in the books amounting to P350,000.
The following events happened to Samsung Corp.
- Equipment-A was sold in June 30, 2023 for P320,000.
- 60% of merchandise inventory were sold in 2022.
- There is no movement as to the ordinary shares of Samsung Corp during the year.
The unadjusted
|
|
Apple Company |
Samsung Corp |
|
Cash |
2,240,000 |
1,800,000 |
|
Trade Receivables |
1,000,000 |
960,000 |
|
Merchandise Inventory |
2,320,000 |
740,000 |
|
Furniture, net |
820,000 |
540,000 |
|
Equipment, net |
1,540,000 |
660,000 |
|
Land |
880,000 |
3,000,000 |
|
Trademark, net |
60,000 |
240,000 |
|
Investment in Samsung |
4,250,000 |
|
|
Cost of Good Sold |
5,500,000 |
3,840,000 |
|
Expenses |
3,240,000 |
1,620,000 |
|
Dividends Declared |
1,280,000 |
1,920,000 |
|
TOTAL |
23,130,000 |
15,320,000 |
|
Liabilities |
1,570,000 |
1,700,000 |
|
Ordinary shares |
3,600,000 |
2,700,000 |
|
|
5,200,000 |
1,860,000 |
|
Sales |
10,730,000 |
7,940,000 |
|
Gain on sale of furniture |
50,000 |
120,000 |
|
Dividend Income |
1,980,000 |
1,000,000 |
|
TOTAL |
23,130,000 |
15,320,000 |
1. How much is the consolidated net income attributable to parent in December 31, 2022?
a. 5,397,000
b. 5,428,875
c. 5,418,250
d. 5,386,375
2. How much is the consolidated net income attributable to non-controlling interest In December 31, 2022?
a. 531,000
b. 536,625
c. 529,125
d. 534,750
3. How much is the consolidated shareholder’s equity as of December 31, 2022?
a. 12,938,250
b. 13,935,000
c. 10,335,000
d. 15,215,000
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