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; quipment 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 1,500,000 350,000 150,000 50,000 Sales 2,000,000 Gross Profit 550,000 200,000 Net Income Dividend Declared (to be paid on Jan 15, 2019) Total Assets 100,000 5,000,000 4,000,000 rom the data above, determine: Assuming the retained earnings of Subsidiary on December 31, 2021 is P350,000, determine the non-controlling nterest to be reported in the consolidated financial statements on December 31, 2021 assuming no changes to Subsidiary company's ordinary hares.

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; quipment 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 1,500,000 350,000 150,000 50,000 Sales 2,000,000 Gross Profit 550,000 200,000 Net Income Dividend Declared (to be paid on Jan 15, 2019) Total Assets 100,000 5,000,000 4,000,000 rom the data above, determine: Assuming the retained earnings of Subsidiary on December 31, 2021 is P350,000, determine the non-controlling nterest to be reported in the consolidated financial statements on December 31, 2021 assuming no changes to Subsidiary company's ordinary hares.

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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