On January 1, 2018, Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary's Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 2018 is P210,000. The following are taken from the books of Parent and Subsidiary for 2018. Parent Subsidiary Sales 2,000,000 550,000 200,000 1,500,000 Gross Profit 350,000 Net Income Dividend Declared (to be paid on Jan 15, 2019) 150,000 100,000 50,000 4,000,000 Total Assets 5,000,000 From the data above, determine: Non-controlling Interest as of December 31, 2018.
On January 1, 2018, Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary's Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 2018 is P210,000. The following are taken from the books of Parent and Subsidiary for 2018. Parent Subsidiary Sales 2,000,000 550,000 200,000 1,500,000 Gross Profit 350,000 Net Income Dividend Declared (to be paid on Jan 15, 2019) 150,000 100,000 50,000 4,000,000 Total Assets 5,000,000 From the data above, determine: Non-controlling Interest as of December 31, 2018.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
WHAT IS THE NON-CONTROLLING INTEREST AS OF DECEMBER 31, 2018
![On January 1, 2018, Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition,
Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary's Inventory was understated by P20,000;
Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by
P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 2018 is P210,000.
The following are taken from the books of Parent and Subsidiary for 2018.
Parent
Subsidiary
1,500,000
Sales
2,000,000
Gross Profit
550,000
200,000
100,000
5,000,000
350,000
150,000
Net Income
Dividend Declared (to be paid on Jan 15, 2019)
50,000
Total Assets
4,000,000
From the data above, determine: Non-controlling Interest as of December 31, 2018.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc6b28483-ba45-4243-bfef-4b85f2c8d3b3%2F2d5be990-e766-40d6-be9f-68297b8fd61e%2Ft2zf0f_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 2018, Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition,
Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary's Inventory was understated by P20,000;
Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by
P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 2018 is P210,000.
The following are taken from the books of Parent and Subsidiary for 2018.
Parent
Subsidiary
1,500,000
Sales
2,000,000
Gross Profit
550,000
200,000
100,000
5,000,000
350,000
150,000
Net Income
Dividend Declared (to be paid on Jan 15, 2019)
50,000
Total Assets
4,000,000
From the data above, determine: Non-controlling Interest as of December 31, 2018.
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