How much is the non controlling interest in the net assets of the subsidiary on december 31,2021 On January 1, 2021, Bass Co. issued equity instruments in exchange for 75% interest in Guitar Co. On acquisition date,Bass Co. elected to measure non-controlling interest at fair value. Bass Co.'s management believes that the fair value ofthe consideration transferred correlates to the fair value of the controlling interest acquired and that the fair value ofthe controlling interest is proportionate to the fair value of the remaining interest.Guitar Co.'s net identifiable assets have carrying amount and fair value of P300,000 and P360,000, respectively. Thedifference is attributable to a building with a remaining useful life of 6 years.The December 31, 2021 statements of financial position of Bass Co. and Guitar Co. are summarized below:Bass Co.Guitar Co.ASSETSInvestment in subsidiary (at cost)Other assetsTOTAL ASSETS300,0001,372,0001,672,000496,000496,000LIABILITIES AND EQUITYTrade and other payablesShare capitalRetained earningsTotal equityTOTAL LIABILITIES AND EQUITY292,000940,000440,0001,380,0001,672,000120,000200,000176,000376,000496,000No dividends were declared by either entity during year. There were also no inter-company transactions and impairmentin goodwill. How much is the non-controlling interest in the net assets of the subsidiary on December 31, 2021?

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much is the non controlling interest in the net assets of the subsidiary on december 31,2021

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

How much is the non controlling interest in the net assets of the subsidiary on december 31,2021

On January 1, 2021, Bass Co. issued equity instruments in exchange for 75% interest in Guitar Co. On acquisition date,
Bass Co. elected to measure non-controlling interest at fair value. Bass Co.'s management believes that the fair value of
the consideration transferred correlates to the fair value of the controlling interest acquired and that the fair value of
the controlling interest is proportionate to the fair value of the remaining interest.
Guitar Co.'s net identifiable assets have carrying amount and fair value of P300,000 and P360,000, respectively. The
difference is attributable to a building with a remaining useful life of 6 years.
The December 31, 2021 statements of financial position of Bass Co. and Guitar Co. are summarized below:
Bass Co.
Guitar Co.
ASSETS
Investment in subsidiary (at cost)
Other assets
TOTAL ASSETS
300,000
1,372,000
1,672,000
496,000
496,000
LIABILITIES AND EQUITY
Trade and other payables
Share capital
Retained earnings
Total equity
TOTAL LIABILITIES AND EQUITY
292,000
940,000
440,000
1,380,000
1,672,000
120,000
200,000
176,000
376,000
496,000
No dividends were declared by either entity during year. There were also no inter-company transactions and impairment
in goodwill. How much is the non-controlling interest in the net assets of the subsidiary on December 31, 2021?

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