Compute for the NCI on June 30, 2023.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 8MC
Related questions
Question
Compute for the NCI on June 30, 2023.
![On June 30, 2021, ABC Co. acquired 75,000 of DEF Co.'s 100,000 outstanding shares with par value per share of P1 for P4 per share.
At this time, Nymph's shares have a quoted price of P3.50 per share and Nymph's retained earnings is P80,000.
Additional information:
Nymph's total assets include land classified as investment property at a cost of P180,000. The land's fair values are P200,000 on
acquisition date and P320,000 on June 30, 2023. DEF uses the cost model for its investment properties. However, the group uses
the fair value model.
On acquisition date, Nymph's building classified as property, plant, and equipment had a fair value of P30,000 in excess of its
carrying amount. The building's remaining useful life is 5 years. The group uses the straight-line method of depreciation.
The current accounts on June 30, 2023 include intercompany receivables and payables of P10,000.
An impairment test on June 30, 2023 concluded that goodwill is impaired by P20,000.
NCI is measured at fair value.
There are no subsequent changes in Nymph's outstanding shares.
The June 30, 2023 individual financial statements of the entities show the following information:
ABC Co.
DEF Co.
Total assets
1,000,000
500,000
120,000
100,000
Total liabilities
200,000
Share capital
Retained earnings
Total liabilities and equity
300,000
500,000
1,000,000
280,000
500,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd75c166f-4166-485d-989a-bcbbbf50da72%2Faf193e1a-e427-4a52-bc42-f515d9e0550e%2F4gz90pe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On June 30, 2021, ABC Co. acquired 75,000 of DEF Co.'s 100,000 outstanding shares with par value per share of P1 for P4 per share.
At this time, Nymph's shares have a quoted price of P3.50 per share and Nymph's retained earnings is P80,000.
Additional information:
Nymph's total assets include land classified as investment property at a cost of P180,000. The land's fair values are P200,000 on
acquisition date and P320,000 on June 30, 2023. DEF uses the cost model for its investment properties. However, the group uses
the fair value model.
On acquisition date, Nymph's building classified as property, plant, and equipment had a fair value of P30,000 in excess of its
carrying amount. The building's remaining useful life is 5 years. The group uses the straight-line method of depreciation.
The current accounts on June 30, 2023 include intercompany receivables and payables of P10,000.
An impairment test on June 30, 2023 concluded that goodwill is impaired by P20,000.
NCI is measured at fair value.
There are no subsequent changes in Nymph's outstanding shares.
The June 30, 2023 individual financial statements of the entities show the following information:
ABC Co.
DEF Co.
Total assets
1,000,000
500,000
120,000
100,000
Total liabilities
200,000
Share capital
Retained earnings
Total liabilities and equity
300,000
500,000
1,000,000
280,000
500,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning