On January 1, 2019, ALUCARD Co. acquired 80% interest in BERTHOLD, Inc. by issuing 5,000 shares with fair value of ₱15 per share. On this date, BERTHOLD’s equity comprised of ₱50,000 share capital and ₱24,000 retained earnings. NCI was measured at its proportionate share in BERTHOLD’s net identifiable assets. BERTHOLD’s assets and liabilities on January 1, 2019 approximate their fair values except for the following: BERTHOLD, Inc. Carrying amounts Fair values Fair value adjustments (FVA) Inventory 23,000 31,000 8,000 Equipment (4 yrs. remaining life) 50,000 60,000 10,000 Accumulated depreciation (10,000) (12,000) (2,000) Totals 63,000 79,000 16,000 BERTHOLD, Inc. declared and paid dividends of ₱6,000 during 2019. There was no impairment in goodwill. The year-end individual statements of profit or loss are shown below: Statements of profit or loss For the year ended December 31, 2019 ALUCARD Co. BERTHOLD, Inc. Sales 300,000 120,000 Cost of goods sold (165,000) (72,000) Gross profit 135,000 48,000 Depreciation expense (40,000) (10,000) Distribution costs (32,000) (18,000) Interest expense (3,000) - Dividend income 4,800 - Profit for the year 64,800 20,000 How much is the profit attributable to Owners of the parent NCI a. 68,000 2,000 b. 64,800 5,200 c. 52,000 18,000 d. 57,200 12,800
- On January 1, 2019, ALUCARD Co. acquired 80% interest in BERTHOLD, Inc. by issuing 5,000 shares with fair value of ₱15 per share. On this date, BERTHOLD’s equity comprised of ₱50,000 share capital and ₱24,000
retained earnings . NCI was measured at its proportionate share in BERTHOLD’s net identifiable assets.
BERTHOLD’s assets and liabilities on January 1, 2019 approximate their fair values except for the following:
|
BERTHOLD, Inc. |
Carrying amounts |
Fair values |
Fair value adjustments (FVA) |
|
Inventory |
23,000 |
31,000 |
8,000 |
|
Equipment (4 yrs. remaining life) |
50,000 |
60,000 |
10,000 |
|
|
(10,000) |
(12,000) |
(2,000) |
|
Totals |
63,000 |
79,000 |
16,000 |
BERTHOLD, Inc. declared and paid dividends of ₱6,000 during 2019. There was no impairment in
Statements of profit or loss
For the year ended December 31, 2019
|
ALUCARD Co. |
BERTHOLD, Inc. |
|
|
Sales |
300,000 |
120,000 |
|
Cost of goods sold |
(165,000) |
(72,000) |
|
Gross profit |
135,000 |
48,000 |
|
Depreciation expense |
(40,000) |
(10,000) |
|
Distribution costs |
(32,000) |
(18,000) |
|
Interest expense |
(3,000) |
- |
|
Dividend income |
4,800 |
- |
|
Profit for the year |
64,800 |
20,000 |
How much is the profit attributable to
Owners of the parent NCI
a. 68,000 2,000
b. 64,800 5,200
c. 52,000 18,000
d. 57,200 12,800
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