ABC Corp owns 60% of the outstanding shares of GHI Company, which itpurchased for P42,000 above underlying book value of P604,800 on December31, 2021. For the year 2024, GHI included in its net income P75,600 of unrealizedgain on a year-end sale of depreciable assets to ABC. The non-controllinginterest of GHI was computed for P10,080 of income in the 2024 consolidatedfinancial statements. The purchase difference allocated to building which isamortized over 20 years. Compute for the r
ABC Corp owns 60% of the outstanding shares of GHI Company, which itpurchased for P42,000 above underlying book value of P604,800 on December31, 2021. For the year 2024, GHI included in its net income P75,600 of unrealizedgain on a year-end sale of depreciable assets to ABC. The non-controllinginterest of GHI was computed for P10,080 of income in the 2024 consolidatedfinancial statements. The purchase difference allocated to building which isamortized over 20 years. Compute for the r
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
ABC Corp owns 60% of the outstanding shares of GHI Company, which it
purchased for P42,000 above underlying book value of P604,800 on December
31, 2021. For the year 2024, GHI included in its net income P75,600 of unrealized
gain on a year-end sale of depreciable assets to ABC. The non-controlling
interest of GHI was computed for P10,080 of income in the 2024 consolidated
financial statements. The purchase difference allocated to building which is
amortized over 20 years. Compute for the reported net income of GHI Company
from its own operation, if the net income of ABC from its own operation for 2024
amounted to P157,500.
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