ABC owns 80% interest of DEF Company and at December 31, 2021, ABC's investment in DEF under the cost method was equal to 80% of DEF's shareholders' equity. During 2022, DEF sells merchandise to ABC for P130,000 at a gross profit to DEF of P26,000. At December 31, 2022, half of this merchandise is included in ABC's inventory. Separate incomes fo ABC and DEF amounted to P162,500 and P91,000 respectively. In the consolidated income statement for 2022, the non-controlling interest in net income of DEF is:

ABC owns 80% interest of DEF Company and at December 31, 2021, ABC's investment in DEF under the cost method was equal to 80% of DEF's shareholders' equity. During 2022, DEF sells merchandise to ABC for P130,000 at a gross profit to DEF of P26,000. At December 31, 2022, half of this merchandise is included in ABC's inventory. Separate incomes fo ABC and DEF amounted to P162,500 and P91,000 respectively. In the consolidated income statement for 2022, the non-controlling interest in net income of DEF is:

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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