At the beginning of the year, Parent Co. acquired 70% interest in Subsidiary Co. On acquisition date, Subsidiary’s identifiable assets approximated their fair values except for an inventory whose fair value exceeded its carrying amount by P10,000 and a building whose fair value exceeded its carrying amount by P80,000. The building has a remaining useful life of 5 years. At the end of the year, Parent Co. and Subsidiary Co. reported profits of P400,000 and P80,000, respectively. No dividends were declared by either entity during year. There were also no inter-company transactions and impairment in goodwill. How much is the consolidated profit attributable to owners of the parent?
At the beginning of the year, Parent Co. acquired 70% interest in Subsidiary Co. On acquisition date, Subsidiary’s identifiable assets approximated their fair values except for an inventory whose fair value exceeded its carrying amount by P10,000 and a building whose fair value exceeded its carrying amount by P80,000. The building has a remaining useful life of 5 years. At the end of the year, Parent Co. and Subsidiary Co. reported profits of P400,000 and P80,000, respectively. No dividends were declared by either entity during year. There were also no inter-company transactions and impairment in goodwill. How much is the consolidated profit attributable to owners of the parent?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the beginning of the year, Parent Co. acquired 70% interest in Subsidiary Co. On acquisition date, Subsidiary’s identifiable assets approximated their fair values except for an inventory whose fair value exceeded its carrying amount by P10,000 and a building whose fair value exceeded its carrying amount by P80,000. The building has a remaining useful life of 5 years. At the end of the year, Parent Co. and Subsidiary Co. reported profits of P400,000 and P80,000, respectively. No dividends were declared by either entity during year. There were also no inter-company transactions and impairment in
How much is the consolidated profit attributable to owners of the parent?
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