How much is the consolidated profit? On January 2, 2021, ABC Co. acquired 60% interest in DDD Corp. for P360,000. Information on DDD Corp's financial position on acquisition date follows: > The identifiable assets and liabilities approximated their fair values except for inventories with carrying amount of P144,000 and fair value of P96,000 and building with carrying value amount of P240,000 and fair value of P250,000. The building has a remaining useful life of 8 years. > DDD Corp's retained earnings was P48,000 > Non-controlling interest is measured at a fair value of P240,000 A summary of the individual financial information of the entities on December 31, 2021 is shown below: DDD Corp. ABC Co. Total Assets 550,000 1,550,000 Total Liabilities 132,000 34,000 Share Capital 300,000 1,200,000 Retained Earnings 118,000 316,000 Sales 350,000 700,000 Cost of Sales 80,000 200,000 Other Operating expenses 200,000 400,000

How much is the consolidated profit? On January 2, 2021, ABC Co. acquired 60% interest in DDD Corp. for P360,000. Information on DDD Corp's financial position on acquisition date follows: > The identifiable assets and liabilities approximated their fair values except for inventories with carrying amount of P144,000 and fair value of P96,000 and building with carrying value amount of P240,000 and fair value of P250,000. The building has a remaining useful life of 8 years. > DDD Corp's retained earnings was P48,000 > Non-controlling interest is measured at a fair value of P240,000 A summary of the individual financial information of the entities on December 31, 2021 is shown below: DDD Corp. ABC Co. Total Assets 550,000 1,550,000 Total Liabilities 132,000 34,000 Share Capital 300,000 1,200,000 Retained Earnings 118,000 316,000 Sales 350,000 700,000 Cost of Sales 80,000 200,000 Other Operating expenses 200,000 400,000

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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