On January 1, 2010, Peter Company purchased 80% of the common stock of Pan Company for P316,000. On this date, Pan Company had common stock, other paid-in capital, and retained earnings of P40,000, P120,000, and P190,000, respectively. Peter Company’s common stock amounted to P500,000 and retained earnings of P200,000. On January 1, 2010, the only tangible assets of Pan that were undervalued were inventory and building. Inventory, for which the FIFO method is used, was worth P5,000 more than cost. Building which was worth P15,000 more than book value, has a remaining life of 8 years, and a straight line depreciation is used. Any remaining excess is full goodwill with an impairment for 2010 amounting to P3,000. Pan Company reported net income of P50,000 and paid dividends of P10,000 in 2010, while the parent’s reported net income amounted to P100,000 and paid dividends of P20,000. 10.)Determine the Consolidated Net Income Attributable to Controlling Interest/Profit Attributable to Equity Holders of Parent: A. P142,000 B. P132,125 C. P126,500 D.P124,100 11.)Using the same information above, compute the non-controlling in Net Income / CNI attributable to Non- controlling interest: A. P10,000 B. P 8,600 C. P 8,625 D. P 8,025 12.)Using the same information above, compute the Consolidated Retained Earnings A. P200,000 B. P304,100 C. P324,100 D.P342,125
On January 1, 2010, Peter Company purchased 80% of the common stock of Pan Company for P316,000. On this date, Pan Company had common stock, other paid-in capital, and
On January 1, 2010, the only tangible assets of Pan that were undervalued were inventory and building. Inventory, for which the FIFO method is used, was worth P5,000 more than cost. Building which was worth P15,000 more than book value, has a remaining life of 8 years, and a straight line
10.)Determine the Consolidated Net Income Attributable to Controlling Interest/Profit Attributable to Equity
Holders of Parent:
A. P142,000
B. P132,125
C. P126,500
D.P124,100
11.)Using the same information above, compute the non-controlling in Net Income / CNI attributable to Non- controlling interest:
A. P10,000
B. P 8,600
C. P 8,625
D. P 8,025
12.)Using the same information above, compute the Consolidated Retained Earnings
A. P200,000
B. P304,100
C. P324,100
D.P342,125
Pete Co. acquires Dale, Inc on January 1, 2010. The consideration transferred exceeds the fair
value of Dale’s net assets. On that date, Pete has a building with a book value of P1,200,000 and a fair value of
P1,500,000. Dale has a building with a book value of P400,000 and a fair value of
P500,000.
What amounts in the Building account appear on Dale’s separate balance sheet and on the
consolidated balance sheet immediately after acquisition?
Push-down Accounting
- P400,000 and P1,600,000
- P500,000 and P1,700,000
- P400,000 and P1,700,000
- P500,000 and P2,000,000
No push-down Accounting
- P500,000 and P2,000,000
- P400,000 and P1,700,000
- P500,000 and P1,700,000
- P400,000 and P2,000,000
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