On January 01, 2021, Batman Corp. acquired 75% of the outstanding stock of Superman Co. for P1,380,000 cash. The book value of Superman Co.'s net assets was P1,200,000. Batman Corp. determined that the inventory and plant assets (remaining life of 5 years) of Superman Co. were understated by P100,000 and P300,000, respectively. Superman Co.'s net income for the year ended December 31, 2021 was P500,000. During the year 2021, Batman Corp. received P240,000 cash dividends from Superman Co. The fair value of NCI was determined at P445,000. Loss on impairment of goodwill was P25,000. Net income of B Corp. under the cost method amounted to P1,000,000. B Corp. is using the fair value method in measuring NCI. How much is the Investment Balance on December 31, 2021 on the books of Batman Corp. under the equity method? a.1,395,000 b.1,375,000 c.1,615,000 d.1,380,000

On January 01, 2021, Batman Corp. acquired 75% of the outstanding stock of Superman Co. for P1,380,000 cash. The book value of Superman Co.'s net assets was P1,200,000. Batman Corp. determined that the inventory and plant assets (remaining life of 5 years) of Superman Co. were understated by P100,000 and P300,000, respectively. Superman Co.'s net income for the year ended December 31, 2021 was P500,000. During the year 2021, Batman Corp. received P240,000 cash dividends from Superman Co. The fair value of NCI was determined at P445,000. Loss on impairment of goodwill was P25,000. Net income of B Corp. under the cost method amounted to P1,000,000. B Corp. is using the fair value method in measuring NCI. How much is the Investment Balance on December 31, 2021 on the books of Batman Corp. under the equity method? a.1,395,000 b.1,375,000 c.1,615,000 d.1,380,000

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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