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gain or loss on disposal of Entity P's share?

gain or loss on disposal of Entity P's share?

FINANCIAL ACCOUNTING
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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Topic: Consolidation - Date of Acquisition

Entity P owns 70,000 shares of Entity S 100,000 shares outstanding, On December 31, 2022 in Entity P's consolidated financial statements, the carrying value of Entity S net assets is P1,000,000 and the carrying value of non-controlling interest in subsidiary (including the non-controlling interest's share of the accumulated other comprehensive income) is P300,000. On January 1, 2023, Entity P decides to sell 50,000 shares in Entity S to a third party in exchange for cash of P800,000. As a result of this transaction, Entity P losses control of Entity S but retains 20% interest, valued at P150,000 on that date. 01 How much is the gain or loss on disposal of Entity P's share?
Transcribed Image Text:Entity P owns 70,000 shares of Entity S 100,000 shares outstanding, On December 31, 2022 in Entity P's consolidated financial statements, the carrying value of Entity S net assets is P1,000,000 and the carrying value of non-controlling interest in subsidiary (including the non-controlling interest's share of the accumulated other comprehensive income) is P300,000. On January 1, 2023, Entity P decides to sell 50,000 shares in Entity S to a third party in exchange for cash of P800,000. As a result of this transaction, Entity P losses control of Entity S but retains 20% interest, valued at P150,000 on that date. 01 How much is the gain or loss on disposal of Entity P's share?
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