GBX Corporation acquired 80% of the outstanding shares of UMD Company on June 1, 2017 for P3,517,500. UMD Company’s stockholder’s equity components at the end of this year are as follows: Ordinary share, P100 par, P1,500,000, Share Premium P675,000 and Retained Earnings P1,335,000. Non-controlling interest is measured at fair value and the fair value is P705,000. The assets of UMD were fairly valued, except for inventories, which are overstated by P66,000, and equipment, which was understated by P90,000. Remaining useful life of equipment is 4 years. Stockholder’s equity of GBX on January 1, 2017 is composed of Ordinary Shares P4,500,000, Share Premium of P1,050,000, Retained Earnings P3,150,000. Goodwill, if any, should be written down by P85,350 at year-end. Net income for the first year of parent is P450,000 and the net income of subsidiary from the date of acquisition is P255,000. Dividends declared at the end of the year amounted to P100,000 and P80,000. During the year, there was no issuance of new ordinary shares. Compute for the non-controlling interest in net assets on December 31, 2017?
26. GBX Corporation acquired 80% of the outstanding shares of UMD Company on June 1, 2017 for P3,517,500. UMD Company’s
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