4. A Co. acquired 60% of the outstanding ordinary shares of B Co. onJanuary 2, 2022. A Co. acquired it at book value which is the same asits fair value at the date of acquisition. Statements of ComprehensiveIncome of A Co. & B Co. for 2022 are as follows:А Со.P218,750131,250P87,50026,250P61,250В Со.P87,50052,500P35,00013,125P21,875- 0 -P21,875Net SalesCost of SalesGross ProfitOperating ExpensesOperating IncomeDividend Revenue14,000P75,250Net IncomeB Co. made sales to A Co. of P28,000 in 2021 and P42,000 in 2022.A Co. reported inventory on December 31, 2021 amounting toP17,500 of which 20% comes from B Co. and inventory on December31,2022 amounting to P21,000 of which 30% comes B Co. A Co. uses30% mark-up on cost and B Co. uses 25% mark-up on cost for theirselling prices. A Co. & B Co. declared and paid dividends in 2022amounting to P21,000 and P17,500, respectively.On January 1, 2022, B Co. has ordinary shares of P80,000; SharePremium of P30,000 and Retained Earnings of P40,000.Compute for the consolidated net income attributable to parentshareholders' equity and amount of non-controlling interest in netassets of subsidiary.a. P74,039; P61,246b. P77,539;B Р61,526c. P77,539; P61,246d. P74,039; P62,526

A Co. acquired 60% ordinary shares in B Co. on 2nd Jan' 2022. We are given the statement of…

Compute for the consolidated net income attributable to parent shareholders' equity and amount of non-controlling interest in net assets of subsidiary. a. P74,039; P61,246 b. P77,539; P61,526 c. P77,539; P61,246 d. P74,039; P62,526

Compute for the consolidated net income attributable to parent shareholders' equity and amount of non-controlling interest in net assets of subsidiary. a. P74,039; P61,246 b. P77,539; P61,526 c. P77,539; P61,246 d. P74,039; P62,526

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

4. A Co. acquired 60% of the outstanding ordinary shares of B Co. on
January 2, 2022. A Co. acquired it at book value which is the same as
its fair value at the date of acquisition. Statements of Comprehensive
Income of A Co. & B Co. for 2022 are as follows:
А Со.
P218,750
131,250
P87,500
26,250
P61,250
В Со.
P87,500
52,500
P35,000
13,125
P21,875
- 0 -
P21,875
Net Sales
Cost of Sales
Gross Profit
Operating Expenses
Operating Income
Dividend Revenue
14,000
P75,250
Net Income
B Co. made sales to A Co. of P28,000 in 2021 and P42,000 in 2022.
A Co. reported inventory on December 31, 2021 amounting to
P17,500 of which 20% comes from B Co. and inventory on December
31,2022 amounting to P21,000 of which 30% comes B Co. A Co. uses
30% mark-up on cost and B Co. uses 25% mark-up on cost for their
selling prices. A Co. & B Co. declared and paid dividends in 2022
amounting to P21,000 and P17,500, respectively.
On January 1, 2022, B Co. has ordinary shares of P80,000; Share
Premium of P30,000 and Retained Earnings of P40,000.
Compute for the consolidated net income attributable to parent
shareholders' equity and amount of non-controlling interest in net
assets of subsidiary.
a. P74,039; P61,246
b. P77,539;B Р61,526
c. P77,539; P61,246
d. P74,039; P62,526

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