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Growth Corporation acquired an 70% interest in Expanded Company on January 1, 2022 for P245,000. On this date the share capital and retained earnings of two companies were as follows: Share Capital Retained Earnings Net Income Dividends Paid Dividends Payable, 12/31/2021 Growth Dividends Payable, 12/31/2022 P630,000 280,000 The assets and liabilities of Expanded were stated at their fair values when Growth acquired its 70% interest and the proportionate share in net identifiable asset was used to initially measure the NCI. Growth uses the cost method to account for its investment in Expanded. Net income and dividends for 2022 for the affiliated companies were: Expanded P175,000 1. How much is the consolidated net income? 35,000 Growth P120,000 42,000 26,000 31,000 Expanded 2. How much is the consolidated retained earnings at December 31, 2022? P50,000 18,000 10,000 End of the year evaluation indicates P5,000 impairment of goodwill. (INPUT YOUR ANSWERS IN FIGURES. DO NOT PUT ANY COMMA, PESO SIGN, DECIMALS, AND EXTRA SPACES) 8,000

Growth Corporation acquired an 70% interest in Expanded Company on January 1, 2022 for P245,000. On this date the share capital and retained earnings of two companies were as follows: Share Capital Retained Earnings Net Income Dividends Paid Dividends Payable, 12/31/2021 Growth Dividends Payable, 12/31/2022 P630,000 280,000 The assets and liabilities of Expanded were stated at their fair values when Growth acquired its 70% interest and the proportionate share in net identifiable asset was used to initially measure the NCI. Growth uses the cost method to account for its investment in Expanded. Net income and dividends for 2022 for the affiliated companies were: Expanded P175,000 1. How much is the consolidated net income? 35,000 Growth P120,000 42,000 26,000 31,000 Expanded 2. How much is the consolidated retained earnings at December 31, 2022? P50,000 18,000 10,000 End of the year evaluation indicates P5,000 impairment of goodwill. (INPUT YOUR ANSWERS IN FIGURES. DO NOT PUT ANY COMMA, PESO SIGN, DECIMALS, AND EXTRA SPACES) 8,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Growth Corporation acquired an 70% interest in Expanded Company on January 1, 2022 for P245,000. On this date the share capital and retained earnings of two companies were as follows: Sem . Growth Expanded Share Capital P630,000 P175,000 Retained Earnings 280,000 35,000 The assets and liabilities of Expanded were stated at their fair values when Growth acquired its 70% interest and the proportionate share in net identifiable asset was used to initially measure the NCI. Growth uses the cost method to account for its investment in Expanded. Net income and dividends for 2022 for the affiliated companies were: Growth Expanded Net Income P120,000 P50,000 Dividends Paid 42,000 18,000 Dividends Payable, 12/31/2021 26,000 10,000 Dividends Payable, 12/31/2022 31,000 8,000 End of the year evaluation indicates P5,000 impairment of goodwill. (INPUT YOUR ANSWERS IN FIGURES. DO NOT PUT ANY COMMA, PESO SIGN, DECIMALS, AND EXTRA SPACES) 1. How much is the consolidated net income? 2. How much is the consolidated retained earnings at December 31, 2022?
Transcribed Image Text:Growth Corporation acquired an 70% interest in Expanded Company on January 1, 2022 for P245,000. On this date the share capital and retained earnings of two companies were as follows: Sem . Growth Expanded Share Capital P630,000 P175,000 Retained Earnings 280,000 35,000 The assets and liabilities of Expanded were stated at their fair values when Growth acquired its 70% interest and the proportionate share in net identifiable asset was used to initially measure the NCI. Growth uses the cost method to account for its investment in Expanded. Net income and dividends for 2022 for the affiliated companies were: Growth Expanded Net Income P120,000 P50,000 Dividends Paid 42,000 18,000 Dividends Payable, 12/31/2021 26,000 10,000 Dividends Payable, 12/31/2022 31,000 8,000 End of the year evaluation indicates P5,000 impairment of goodwill. (INPUT YOUR ANSWERS IN FIGURES. DO NOT PUT ANY COMMA, PESO SIGN, DECIMALS, AND EXTRA SPACES) 1. How much is the consolidated net income? 2. How much is the consolidated retained earnings at December 31, 2022?
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