Plum Corporation acquired 80% of Slum Co. for P 5,000,000 on January 2, 2019. On this date, Slam Co. reported Ordinary share capital of P 3,000,000 and Retained Earnings of P2,000,000 Change in assets to fair values were undervaluation of P 300,000 and P 400,000 in Equipment and Building respectively. Both assets have 10-year remaining useful life. An annual review revealed that goodwill has not been impaired. 4. Slam Co. earned income and paid dividends as follows: 2019 2020 2021 1,000,000 400,000 1,200,000 500,000 1,3000,000 600,000 Net Income Dividends 000,0 The Non-Controlling interest in the net income of Slam Co. at December 31, 2020 is: 00.03 a. P140,000 000,000 b. P184,000 c. P226,000 d. P240,000 5. The NCI at December 31, 2021 assuming Plum Corp. opted to measure NCI at fair Value is: col a. P800,000 b. P1,078,000 c. P1,400,000vls vd big ebnobrvib bas bshogo d. P1,608,000 000,00E 000,00 000,08 Ewoflo welay 000,08A 000.000,1 350 abrobivid CHAPTER 3: CONSOLIDATION - SUBSEQUENT TO DATE OF ACQUISITION 1O TA Page | 123 6. The balance of the investment account at December 31, 2021 is: a. P5,924,000 b. PS,000,000 c. P5,744,000 d. P7,660,000 7. The dividends income of Plum Co. from Slam Co.in 2021 is a. P480,000 b. P948,000 c. P560,000 d. P504,000 8. Accountancy Company acquired 75% of outstanding ordinary shares of Finance Company for P900,000. Book value of Finance Company's net assets is P1,000,000. Upon re- measurement of acquires net assets, it shows that inventory has a fair value lower by P40,000 than its book value and equipment held for 3 years has a fair value and book value of P450,000 and P360,000, respectively. The original cost of Finance Company's equipment is P576,000 with no residual value. Accountancy opt to measure NCI at fair value of P275,000. During the year Accountancy reported net income from own operation of P300,000 and received P30,000 dividend from Finance. Finance Company's net income amounts to P120,000. Goodwill, if partial, is impaired by P13,500. Compute the consolidated net income. а. Р424,000 b. P439,000 c. P427,000 d. P394,000 9. Refer to #8, Non-Controlling Interest in Net Assets of Subsidiary at the end is: а. Р296,000 b. P298,500 c. P299,000 d. P286,500 10. Refer to #8, Net income attributable to Accountancy Company is: a. Р393,000 b. P376,500 с. Р390,000 d. P406,500 000.0029