27. On January 1, 2022, Artemis Company purchased 80% of the outstanding share of Diana Corporation for P1,840,000. The book value of Diana's net assets amounted to P2,000,000. Book values approximate the fair values at acquisition date. Artemis chose the fair value method in estimating the value of NCI. At acquisition date, NCI has a fair value of P440,000. On October 31, 2022, Artemis sold 10% of the share capital to several investors for P260,000. The fair value of the 10% share at that time is P240,000. How much is the gain to be reported in the consolidated statement of income for the year ended December 31, 2022 as a result of the sale of 10% ownership? a. Р-0- b. P30,000 с. Р20,000 d. P60,000

27. On January 1, 2022, Artemis Company purchased 80% of the outstanding share of Diana Corporation for P1,840,000. The book value of Diana's net assets amounted to P2,000,000. Book values approximate the fair values at acquisition date. Artemis chose the fair value method in estimating the value of NCI. At acquisition date, NCI has a fair value of P440,000. On October 31, 2022, Artemis sold 10% of the share capital to several investors for P260,000. The fair value of the 10% share at that time is P240,000. How much is the gain to be reported in the consolidated statement of income for the year ended December 31, 2022 as a result of the sale of 10% ownership? a. Р-0- b. P30,000 с. Р20,000 d. P60,000

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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