of GHI Company, which it purchased for P42,000 above underlying book value of P604,800 on December 31, 2021. For the year 2024, GHI included in its net income P75,600 of unrealized gain on a year-end sale of depreciable assets to ABC. The non-controlling interest of GHI was computed for P10,080 of income in the 2024 consolidated

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
ABC Corp owns 60% of the outstanding shares of GHI Company, which it purchased for P42,000 above underlying book value of P604,800 on December 31, 2021. For the year 2024, GHI included in its net income P75,600 of unrealized gain on a year-end sale of depreciable assets to ABC. The non-controlling interest of GHI was computed for P10,080 of income in the 2024 consolidated financial statements. The purchase difference allocated to building which is amortized over 20 years. Compute for the reported net income of GHI Company from its own operation, if the net income of ABC from its own operation for 2024 amounted to P157,500.
Your answer
 
 
 
 
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
S Corporations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education