Determine the non-controlling interest in net assets of subsidiary in the year 20x6. Phlaire acquired 70 percent of Syanne on July 1, 20x5. Based on the purchase price, proportionate goodwill of P450,000 wasrecognized. The 20x6 financial statements are as follows:PhlaireSyanneIncome StatementP 1,200,000(802,500)(150,000)52,500300.000 P 150.000Sales900,000(600,000)(150,000)Cost of Goods SoldOperating ExpensesDividend Income-0-Net IncomeStatement of Accumulated ProfitsP 1,275,000Accumulated Profits, January 1, 2016Net IncomeP1,950,000300,000150,00075,000)P2,100.000 P 1,350,000Dividends Paid(150,000)Accumulated Profits, December 31, 2016Statement of Financial PositionTIAP 450,0001,050,000Cash and Receivables600,000InventoryInvestment in Syanne447,0001,353,0001,500,000-0-Fixed Assets900,000Accumulated DepreciationTotal Assets(450,000)P3.450,000 P 2,100.000(300,000)AGUIO CITP 600,000150,000P 900,000450,0002,100 000P 3.450,000 P 2.100,000LiabilitiesOrdinary shareAccumulated profitsTotal Liabilities and Equity1,350,000Phlaire sells inventory costing P108,000 to Syanne during 20x5 for P180,000. At year's end, 30 percent is left. Syanne sellsinventory costing P300,000 to Phlaire during 201x for P375,000. At year's end, 20 percent is left.

Non-controlling interest is the is the ownership position of the holder with minority shares in the…

Answered: Determine the non-controlling interest…

Business

Accounting

Determine the non-controlling interest in net assets of subsidiary in the year 20x6

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 11 - If the capital share between 10% and 50% of the total capital of another enterprise is…

A: The question is related to acquisition of capital share between 10% and 50% of the total capital of…

Q: 17. Pab Corporation decided to establish Sollon Company as a wholly owned subsidiary by transferring…

A: Detailed Explanation1. Journal Entry for Pab Corporation:Pab Corporation is transferring assets and…

Q: Assume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the…

A: Given, Cash price = $14 million

Q: Assume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: mpany sale, a workpaper entry is made by debiting. A. All of these.

A: The correct answer is : A. All of these.

Q: On 20 December 20x1, a Parent paid interest of $200,000 to its 80%-owned Subsidiary. The Subsidiary…

A: Journal entry is a primary entry that records the financial transactions initially. A journal entry…

Q: On January 1, 20x1, ABC Company acquired 80% of XYZ Company's common stock for 275,000 cash. At that…

A: Net income:- Net income is also considered as the net earnings of the business that represents money…

Q: In a mid-year purchase when the subsidiary's books are not closed until the end of the year, the…

A: A consolidated financial statement is a group's financial statement that is presented as a single…

Q: Q1) When a company owns 50% or more of another company, accounting standards require that the owner…

A: SOLUTION- In general, the consolidation of financial statements requires a company to integrate and…

Q: In a "type C" sotck for assets acquisition the purchasing corporation acquires substantially all of…

A: Type C reorganization involves a purchasing corporation acquiring most of a target's assets using…

Q: How is the noncontrolling interest in a subsidiary company calculated as of the end of a reporting…

A: Definition: Non-controlling interest in a subsidiary company: The non-controlling interest does…

Q: on the 28/02/x2 a parent acquires 100 of the share capital of a subsidiary entity.at the groups year…

A: Pre and Post acquisition profit Pre Acquisition Profit - It is the profit which pertains to the…

Q: Assets Parent Subsidiary Cash Accounts receivable, net Company P' 36,900 Company Р 37,400 34,200…

A: On 01.01., Parent company acquired subsidiary company = 90% Purchase consideration = 5400 shares @…

Q: What is the total non-controlling interest in net income of subsidiary (NCINI5) on Dec 31, 20x5?

A: As per our protocol, we provide the solution to the one question only but as you have asked two…

Q: What method must be used if FASB 94 prohibits full consolidation of a 70% owned subsidiary?

A: FASB 94 - This Statement amends ARB No. 51, Consolidated Financial Statements, to require…

Q: PC Illustration 1: Determination of goodwill NCZ A Limited acquires 80% of B Limited by paying cash…

A: Goodwill can be determined by: 1)Fair value method 2)Proportionate share method Non-controlling…

Q: the years subsequent to the year of sale of a 90% owned subsidiary who sells equipment to its parent…

A: Solution Concept When there is a sale made (upstream or down stream ) and if the goods remains…

Q: A. the results of the subsidiary for the period of time that it was controlled to be accounts.…

A: AASB stands for Australian accounting standards board and belongs to the Australian government…

Q: hich of the following entries appear on the parent company’s books to account for its investment in…

A: Solution Concept In case of the investment in subsidiary , the net income of subsidiary is credited…

Q: On 1 July 2020, Sky Ltd acquired 70% of the share capital (ex. div.) of Jim Ltd for $500,000. At…

A: Part 2: ExplanationIn Step 1, we calculated the NCI share of Jim Ltd's equity on the acquisition…

Q: ubsidiary company issued $1,000,000 (face) 6 percent, five-year bonds to an unaffiliated company for…

A: Parent company acquires an 80% interest in its Subsidiary on January 1, 2020. On January 1, 2020,…

Q: To arrive at the U.S. GAAP-based net income fi gures shown in Exhibit 3, Royal Ahold fully…

A: Under US GAAP, A company should consolidate another company's accounts while reporting only when its…

Q: In the year an 80% owned subsidiary sells equipment to its parent company at a gain, the…

A: Answer: Option (D). Minus the net amount of unrealized gain on the intercompany sales is correct.

Q: amount of the inventory that S Company purchased from P Company in the December 31, 2019…

A: As per the given information in the above question we must determine the carrying amount of the…

Q: Parent Ltd (Parent) controls a subsidiary Sub Ltd (Sub), in which it owns 70 per cent of the issued…

A: Consolidation- Consolidation is a statutory process in which different business entities join forces…

Q: On May 1, 20x1, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. The incomplete…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: Phlaire acquired 70 percent of Syanne on July 1, 20x5. Based on the purchase price, proportionate…

A: The (NCI) non-controlling interest indicates the share of the owned company or subsidiary that the…

Q: Parent Corporation acquired all the identifiable net assets of Sub Company by issuing ordinary…

A: Herein above we need to first calculate the fair value of net asset acquired. Calculation of Fair…

Q: The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: E Ltd. $ 96,150…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Q: Use the following facts for Multiple Choice problems 18-20. Each of the problems is independent of…

A: A company can report the earnings it makes from its investment in another business using the equity…

Q: In preparing the Subsidiary company's Income distribution schedule (IDS), how is the total amount…

A: Income distribution schedule is the frequency of scheduled distributions of dividends or capital…

Q: ompany A acquires 70 per cent of Company B for a cash price of $14 million when the share capital…

A: Consolidated statement of financial position Note: Since you have posted a question with multiple…

Q: On January 5, 20x9, Parent Company acquired 80% of the outstanding shares of Subsidiary Company for…

A: Consolidated financial statements:- Consolidated financial statements are the statements of group in…

Q: Consolidated amounts when affiliate's debt is acquired from non-affiliate Assume that a Parent…

A: Consolidation It refers to the merging of two or more financial items such as assets, liabilities or…

Q: Discuss the related party party disclosure required in the financial statements of Terrier plc only.

A: IAS 24 Related Party Disclosures Related party disclosure is important in financial statements that…

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

Determine the non-controlling interest in net assets of subsidiary in the year 20x6.

Phlaire acquired 70 percent of Syanne on July 1, 20x5. Based on the purchase price, proportionate goodwill of P450,000 was
recognized. The 20x6 financial statements are as follows:
Phlaire
Syanne
Income Statement
P 1,200,000
(802,500)
(150,000)
52,500
300.000 P 150.000
Sales
900,000
(600,000)
(150,000)
Cost of Goods Sold
Operating Expenses
Dividend Income
-0-
Net Income
Statement of Accumulated Profits
P 1,275,000
Accumulated Profits, January 1, 2016
Net Income
P1,950,000
300,000
150,000
75,000)
P2,100.000 P 1,350,000
Dividends Paid
(150,000)
Accumulated Profits, December 31, 2016
Statement of Financial Position
TIA
P 450,000
1,050,000
Cash and Receivables
600,000
Inventory
Investment in Syanne
447,000
1,353,000
1,500,000
-0-
Fixed Assets
900,000
Accumulated Depreciation
Total Assets
(450,000)
P3.450,000 P 2,100.000
(300,000)
AGUIO CIT
P 600,000
150,000
P 900,000
450,000
2,100 000
P 3.450,000 P 2.100,000
Liabilities
Ordinary share
Accumulated profits
Total Liabilities and Equity
1,350,000
Phlaire sells inventory costing P108,000 to Syanne during 20x5 for P180,000. At year's end, 30 percent is left. Syanne sells
inventory costing P300,000 to Phlaire during 201x for P375,000. At year's end, 20 percent is left.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Solution

VIEW

Step 3: Conclusion

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

how much is the non-controlling interest on december 31, 20x2 if entity A acquired 90% interest in entity B on January 1, 20x1 when Entity B's net assets had a fair value of 100. on december 31, 20x2 entity B's net assets increased to 200 after adjustments for acquisition date for fair values, net of depreciation
On 31 December 20x1, AAA Ltd acquired 70% equity interest in BBB Ltd by paying a consideration of $120,000 to the shareholders when the fair value of BBB Ltd's identifiable net assets was ascertained to be $100,000. a) What is the amount of goodwill if any? b) What is the amount of non-controlling interest (NCI) at acqusition assuming AAA measures any NCI in the subsidiary at the proportionate share of the subsidiary's identifiable net assets?
Using the proportionate basis or partial goodwill method, compute the equity holders of parent (or controlling interest) retained earnings on January 1:A. P 48,000 C. P 84,900B. P52,100 D. P 89,000
19
Please answer requirement 1 - 9
Parent Ltd (Parent) controls a subsidiary Sub Ltd (Sub), in which it owns 70 per cent of the issued capital since 30 June 20X3. The following transactions are relevant for the preparation of the consolidated financial statements for the financial year ending 30 June 20X7. Transaction 1: During the financial year ending 30 June 20X4, Sub sold an item of plant to Parent at a loss. Parent is still using the plant at 30 June 20X7. Transaction 2: Sub paid an interim dividend in August 20X5. Parent is exempt from income tax on dividends received from the subsidiary. Transaction 3: During the financial year ending 30 June 20X7, Parent sold inventory to Sub for a price greater than its cost to Parent. One-third of this inventory is still on hand at 30 June 20X7. Transaction 4: On 1 November 20X6, Parent borrowed $50 000 from Sub at an interest rate of 10 per cent per annum. The interest on the loan is payable every six months starting 1 May 20X7. The loan is still outstanding at 30 June…
How much is the non controlling interest in the net assets of the subsidiary on december 31,2021
For the year ended December 31, the following results were given: Dividend Paid Net Income Parent Company P15,000 P30,200Subsidiary Company 4,000 9,400 Using the proportionate basis or partial goodwill method, compute the non-controlling interest on December 31.A. P 0 C. P 610B. P 540 D. P 940 Note: Just use the information provided to arrive at the answer.
3-Assume that a Parent company owns 100% of its Subsidiary. On January 1, 2020 the Parent company had a $2,000,000 (face) bond payable outstanding with a carrying value of $2,140,000. The bond was originally issued to an unaffiliated company. On that same date, the Subsidiary acquired the bond for $1,992,000. During 2020, the Parent company reported $1,260,000 of (pre-consolidation) income from its own operations (i.e. prior to any equity method adjustments by the Parent company) and after recording interest expense. The Subsidiary reported $840,000 of (pre-consolidation) income from its own operations after recording interest income. Related to the bond during 2020, the parent reported interest expense of $220,000 while the subsidiary reported interest income of $190,000. Required: Determine the following amounts that will appear in the 2020 consolidated income statements. a. Interest income from bond investmentb. Interest expense on bond payablec. Gain (loss) on constructive…