Lend Co. acquired inventories on May 1, 2021 from its 70% owned subsidiary, Martin Company. The inventories were sold for P188,000, including the 25% mark up on cost. Out of these inventories, 65% were sold to outsiders. During 2022, Lend Co. reported net income of P430,000 and Martin Co. reported net income of P280,000. How much is the realized profit to be allocated to non-controlling interest in 2022?
Lend Co. acquired inventories on May 1, 2021 from its 70% owned subsidiary, Martin Company. The inventories were sold for P188,000, including the 25% mark up on cost. Out of these inventories, 65% were sold to outsiders. During 2022, Lend Co. reported net income of P430,000 and Martin Co. reported net income of P280,000. How much is the realized profit to be allocated to non-controlling interest in 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lend Co. acquired inventories on May 1, 2021 from its 70% owned
subsidiary, Martin Company. The inventories were sold for P188,000,
including the 25% mark up on cost. Out of these inventories, 65% were
sold to outsiders. During 2022, Lend Co. reported net income of
P430,000 and Martin Co. reported net income of P280,000.
How much is the realized profit to be allocated to non-controlling interest
in 2022?
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