On January 02, 2021, Parent Corporation purchased 80% of SUBSIDIARY Company's ordinary shares for P648,000. P30,000 of the excess (aggregate of consideration and NCI over the book value of net assets) 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: PARENT Corporation. SUBSIDIARY Company Ordinary shares P1,050,000 P240,000 Retained earnings 1,560,000 P420,000 On December 31, 2021, SUBSIDIARY Company reported net income of P105,000 and paid dividends of P36,000 to Parent. Parent reported earnings from its own operations of P285,000 and paid dividends of P183,00O. Goodwill had been impaired and should be reported at P20,000 on December 31, 2021. (INPUT YOUR ANSWERS IN FIGURES. DO NOT PUT ANY COMMA, PESO SIGN, DECIMALS, AND EXTRA SPACES) 1. What is the non-controlling interest in profit of SUBSIDIARY Company on December 31, 2021? 2. What is the consolidated profit attributable to parent's shareholders on December 31, 2021? 3. What amount of non-controlling interest is presented in the consolidated statement of financial position on December 31, 2021?
On January 02, 2021, Parent Corporation purchased 80% of SUBSIDIARY Company's ordinary shares for P648,000. P30,000 of the excess (aggregate of consideration and NCI over the book value of net assets) 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: PARENT Corporation. SUBSIDIARY Company Ordinary shares P1,050,000 P240,000 Retained earnings 1,560,000 P420,000 On December 31, 2021, SUBSIDIARY Company reported net income of P105,000 and paid dividends of P36,000 to Parent. Parent reported earnings from its own operations of P285,000 and paid dividends of P183,00O. Goodwill had been impaired and should be reported at P20,000 on December 31, 2021. (INPUT YOUR ANSWERS IN FIGURES. DO NOT PUT ANY COMMA, PESO SIGN, DECIMALS, AND EXTRA SPACES) 1. What is the non-controlling interest in profit of SUBSIDIARY Company on December 31, 2021? 2. What is the consolidated profit attributable to parent's shareholders on December 31, 2021? 3. What amount of non-controlling interest is presented in the consolidated statement of financial position on December 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:On January 02, 2021, Parent Corporation purchased 80% of SUBSIDIARY Company's ordinary shares for P648,000. P30,000 of the
excess (aggregate of consideration and NCI over the book value of net assets) 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:
PARENT Corporation.
SUBSIDIARY Company
Ordinary shares
P1,050,000
P240,000
Retained earnings
1,560.000
P420,000
On December 31,2021, SUBSIDIARY Company reported net income of P105,000 and paid dividends of P36,000 to Parent. Parent
reported earnings from its own operations of P285,000 and paid dividends of P183,000. Goodwill had been impaired and should be
reported at P20.000 on December 31, 2021.(INPUT YOUR ANSWERS IN FIGURES. DO NOT PUT ANY COMMA, PESO SIGN,
DECIMALS, AND EXTRA SPACES)
1. What is the non-controllirng interest in profit of SUBSIDIARY Company on December 31, 2021?
2. What is the consolidated profit attributable to parent's shareholders on December 31, 2021?
3. What amount of non-controlling interest is presented in the consolidated statement of financial position on December 31, 2021?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education