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6. Using the same information in #5, what is the Noncontrolling interest's share in the Net income of the subsidiary? * Your answer 7. Using the same information in #5, compute for the Equity Shareholder's Net Income Your answer 8. Using the same information in #5, compute for the total realized gross profit (from upstream and downstream sales)

6. Using the same information in #5, what is the Noncontrolling interest's share in the Net income of the subsidiary? * Your answer 7. Using the same information in #5, compute for the Equity Shareholder's Net Income Your answer 8. Using the same information in #5, compute for the total realized gross profit (from upstream and downstream sales)

FINANCIAL ACCOUNTING
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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5. On January 2, 2019, U Co. purchased 75% of the outstanding shares of N Co. resulting to a goodwill of P60,000. On that date, the non-cash assets of N Co. whose book values did not equal their book values were accounts receivable which was overstated by P4,500 and equipment with a remaining 5 year life on the purchase date which was understated by P50,000. For the year 2010, U and N reported net income of P350,000 and P200,000 each respectively. U's beginning inventory included merchandise purchased from N Company amounting to P39,000 which was sold to them by N at a 30% markup, 80% of these goods were sold during the year. N, on the other hand, included inventory items which they purchased from U Co. amounting to 18,000. These goods were sold by U at a 25% markup. 90% of these goods were sold by N for the year. Determine the consolidated net income for 2020. *
Transcribed Image Text:5. On January 2, 2019, U Co. purchased 75% of the outstanding shares of N Co. resulting to a goodwill of P60,000. On that date, the non-cash assets of N Co. whose book values did not equal their book values were accounts receivable which was overstated by P4,500 and equipment with a remaining 5 year life on the purchase date which was understated by P50,000. For the year 2010, U and N reported net income of P350,000 and P200,000 each respectively. U's beginning inventory included merchandise purchased from N Company amounting to P39,000 which was sold to them by N at a 30% markup, 80% of these goods were sold during the year. N, on the other hand, included inventory items which they purchased from U Co. amounting to 18,000. These goods were sold by U at a 25% markup. 90% of these goods were sold by N for the year. Determine the consolidated net income for 2020. *
6. Using the same information in #5, what is the Noncontrolling interest's share in the Net income of the subsidiary? * Your answer 7. Using the same information in #5, compute for the Equity Shareholder's Net Income Your answer 8. Using the same information in #5, compute for the total realized gross profit (from upstream and downstream sales)
Transcribed Image Text:6. Using the same information in #5, what is the Noncontrolling interest's share in the Net income of the subsidiary? * Your answer 7. Using the same information in #5, compute for the Equity Shareholder's Net Income Your answer 8. Using the same information in #5, compute for the total realized gross profit (from upstream and downstream sales)
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