On January 1, 2012, P Corporation purchased 80% of S Company's outstanding stock for P620,000. At that date, all of S Company's assets and liabilities had market values approximately equal to their book values and no goodwill was included in the purchase price. The following information was available for 2012: Income from own operations of P Corporation, P150,000; Operating loss of S Company, P20,000. Dividends paid in 2012 by P Corporation, P75,000; by S Company to P Corporation, P12,000. On July 1, 2012, there was a downstream sale of equipment at a gain of P25,000. The equipment is expected to have a remaining useful life of 10 years from the date of sale. Also, on January 1, 2012, there was an upstream sale of furniture at a loss of P7,500. The furniture is expected to have a useful life of five years from the date of sale. Non-controlling interest is measured at fair market value. 1. How much is the consolidated net income attributable to parent shareholders' equity? A. P97,250 B. P115,050 C. P112,250 D. P103,050

On January 1, 2012, P Corporation purchased 80% of S Company's outstanding stock for P620,000. At that date, all of S Company's assets and liabilities had market values approximately equal to their book values and no goodwill was included in the purchase price. The following information was available for 2012: Income from own operations of P Corporation, P150,000; Operating loss of S Company, P20,000. Dividends paid in 2012 by P Corporation, P75,000; by S Company to P Corporation, P12,000. On July 1, 2012, there was a downstream sale of equipment at a gain of P25,000. The equipment is expected to have a remaining useful life of 10 years from the date of sale. Also, on January 1, 2012, there was an upstream sale of furniture at a loss of P7,500. The furniture is expected to have a useful life of five years from the date of sale. Non-controlling interest is measured at fair market value. 1. How much is the consolidated net income attributable to parent shareholders' equity? A. P97,250 B. P115,050 C. P112,250 D. P103,050

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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Question

On January 1, 2012, P Corporation purchased 80% of S Company's outstanding
stock for P620,000. At that date, all of S Company's assets and liabilities had market
values approximately equal to their book values and no goodwill was included in the
purchase price. The following information was available for 2012: Income from own
operations of P Corporation, P150,000; Operating loss of S Company, P20,000.
Dividends paid in 2012 by P Corporation, P75,000; by S Company to P Corporation,
P12,000.
On July 1, 2012, there was a downstream sale of equipment at a gain of P25,000.
The equipment is expected to have a remaining useful life of 10 years from the date
of sale. Also, on January 1, 2012, there was an upstream sale of furniture at a loss of
P7,500. The furniture is expected to have a useful life of five years from the date of
sale. Non-controlling interest is measured at fair market value.
1. How much is the consolidated net income attributable to parent shareholders'
equity?
A. P97,250
B. P115,050
C. P112,250
D. P103,050

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