CHAPTER 3: CONSOLIDATION - SUBSEQUENT TO DATE OF ACQUISITION VOTTI2IU00 Page 124 11. YSL Corporation acquired 80% of the outstanding ordinary shares of GBX Company on June 1, 2020 for P586,250. GBX Company's shareholder's equity components at the end of this year were as follows: Ordinary shares, P100 par, P250,000; Share premium, P112,500 and Retained earnings, P222,5000. Non-controlling interest (NCI) is measured at fair value. All the assets of GBX were fairly valued, except for inventories, which is overstated by P11,000 and equipment, which is understated by P15,000. Remaining useful life of equipment is 4 years. Both companies use straight line method for depreciation and amortization. Shareholder's equity of YSL on January 1, 2020 is composed of Ordinary shares, P750,000; Share premium, P175,000 and Retained earnings, P525,000. Fair value of NCI on the date of acquisition is P117,500. Goodwill, if any, should be written down by P14,225 at year end. Net income for the first year of parent and subsidiary are P75,000 and P42,500 (from date of acquisition), respectively. Dividends declared at the end of the year amounted to P20,000 and P15,000. There was no issuance of new shares during the year. What is the amount of non-controlling interest in net assets of GBX Company as of oa December 31, 2020? a. P145,167.50 b. P127,242.50 c. P121,917.50 d. P124,242.50 12. Refer to #11, what is the amount of consolidated equity at the end of the year? a. P1,520,345.50 b. P1,644,587.50 c. P1,462,262.50 d. P1,624,262,50 8 of 13. For 2020, Parent Company reported P500,000 of net income from separate operations. This amount excludes income relating to Sunshine Company, its 80%-owned subsidiary, which reported P100,000 of net income and declared P55,000 of dividends in 2020. What is the consolidated net income for 2020? a. P580,000 b. P536,000 c. P544,000 d. P600,000 000009 DATE OF ACQUISITION CHAPTER 3: CONSOLIDATION- SUBSEQUENT TO CHAPTER 3: CONSOLIDATION - SUBSEQUENT TO DATE OF ACQUISITION MOITI2IU0A Page 125 14. On January 2, 2020, Perfect Corporation purchase 80% of Seldom Company's ordinary shares for P3,240,000. P150,000 of the total excess is attributable to goodwill and the balance to a depreciable asset with an economic life of 10 years. NCI is measured at its fair value on the date of acquisition. On the date of acquisition, shareholder's equity of the two companies follows: Perfect Seldom Ordinary share Accumulated Profits (losses) rla P 5,250,000 P 1,200,000 ea 7,800,000 2,100,000 On December 31, 2020, Seldom Company reported net income of P525,000 and paid dividends of P225,000 to its shareholders. Perfect Co. reported net income of P1,605,000 and paid dividends of P690,000. Goodwill had been impaired and should be reduced by P120,000 for the current year. On December 31, 2020, what is the consolidated net income? a. P1,770,000 b. P1,788,750 c. P1,800,000 d. P1,893,750 sde bo 15. On December 31, 2020, what is the net income attributable to parent? a. P1,680,000 b. P1,701,000 c. P1,782,000 d. P1,800,000 *. On December 31, 2020, what is the consolidated accumulated profits (losses) attributable to parent? a. P8,787,000 b. P8,790,000 c. P8,811,000 d. P10,398,750 odme sbeoo