Items 7 - 9: On January 2, 2022, Phillips Corporation purchase 80% of Signage Company's outstanding shares for P648,000. P30,000 of the excess is attributable to goodwill and the balance to an equipment with an economic life of ten years. Non-controlling interest is measured at its fair value on date of acquisition. On the date of acquisition, stockholders' equity of the two companies were as follows: Phillips Corporation Signage Company P 240,000 420,000 Ordinary shares P1,050,000 Retained earnings 1,560,000 On December 31, 2022, Signage Company reported net income of P105,000 and paid dividends of P36,000 to Philips. Philips reported from its separate operations of P285,000 and paid dividends of P138,000. Goodwill had been impaired and should be reported at P6,000 on December 31, 2022. 7) What is the non-controlling interest in profit of Signage Company on December 31, 2022? A. P 21,000 C. P 18,750 D. P 18,600 B. P 13,800 8) What is the consolidated profit attributable to parent shareholders on December 31, 2022? A P 328,500 B. P360,000 C. P336,000 D. P356,400 9) What amount of non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2022? A P164,250 B. P145,500 C. P166,800 D. P154,500
Items 7 - 9: On January 2, 2022, Phillips Corporation purchase 80% of Signage Company's outstanding shares for P648,000. P30,000 of the excess is attributable to goodwill and the balance to an equipment with an economic life of ten years. Non-controlling interest is measured at its fair value on date of acquisition. On the date of acquisition, stockholders' equity of the two companies were as follows: Phillips Corporation Signage Company P 240,000 420,000 Ordinary shares P1,050,000 Retained earnings 1,560,000 On December 31, 2022, Signage Company reported net income of P105,000 and paid dividends of P36,000 to Philips. Philips reported from its separate operations of P285,000 and paid dividends of P138,000. Goodwill had been impaired and should be reported at P6,000 on December 31, 2022. 7) What is the non-controlling interest in profit of Signage Company on December 31, 2022? A. P 21,000 C. P 18,750 D. P 18,600 B. P 13,800 8) What is the consolidated profit attributable to parent shareholders on December 31, 2022? A P 328,500 B. P360,000 C. P336,000 D. P356,400 9) What amount of non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2022? A P164,250 B. P145,500 C. P166,800 D. P154,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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Transcribed Image Text:7) What is the non-controlling interest in profit of Signage Company on
December 31, 2022?
A P21,000
C. P 18,750
D. P 18,600
B. P 13,800
8) What is the consolidated profit attributable to parent shareholders on
December 31, 2022?
A P 328,500
C. P336,000
D. P356,400
B. P360,000
9) What amount of non-controlling interest is to be presented in the
consolidated statement of financial position on December 31, 2022?
A. P164,250
C. P166,800
B. P145,500
D. P154,500
10)Perch acquired 70 percent of Salmon for P 875,000 at the beginning of
2022. The book value of Salmon at that date was P 1,000,000, and the
entire purchase differential was identified as goodwill. The reported net
income for Perch during 2022 and 2023 was P 46,000 and P 54,000,
respectively, while the dividends declared during the two years were P
30,000 per year. How much noncontrolling interest would be reported
in the 2023 end-of-year consolidated statement of financial position?
A P 300,000
C. P 387,000
D. P 903,000
B. P 312,000
Transcribed Image Text:Items 7 - 9:
On January 2, 2022, Phillips Corporation purchase 80 % of Signage
Company's outstanding shares for P648,000. P30,000 of the excess is
attributable to goodwill and the balance to an equipment with an
economic life of ten years. Non-controlling interest is measured at its
fair value on date of acquisition.
On the date of acquisition, stockholders' equity of the two companies
were as follows:
Phillips
Corporation
Signage
Company
P 240,000
420,000
Ordinary shares
P1,050,000
1,560,000
Retained earnings
On December 31, 2022, Signage Company reported net income of
P105,000 and paid dividends of P36,000 to Philips. Philips reported
from its separate operations of P285,000 and paid dividends of
P138,000. Goodwill had been impaired and should be reported at
P6,000 on December 31, 2022.
7) What is the non-controlling interest in profit of Signage Company on
December 31, 2022?
A P 21,000
C. P 18,750
D. P 18,600
B. P 13,800
8) What is the consolidated profit attributable to parent shareholders on
December 31, 2022?
A P 328,500
B. P360,000
C. P336,000
D. P356,400
9) What amount of non-controlling interest is to be presented in the
consolidated statement of financial position on December 31, 2022?
A P164,250
B. P145,500
C. P166,800
D. P154,500
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