On January 1, 2020, HULK CORP. acquired 70% of outstanding ordinary shares of HALL INC. at a price of P210,000. On the same date, the net assets of HALL INC. were reported at P260,000. On January 1, 2020 HULK reported retained earnings of P2,000,000 while HALL reported retained earnings of P200,000. All of the assets and liabilities of HALL are fairly valued except machinery which is undervalued by P80,000 and in inventory which is overvalued by P10,000. The said machinery has a remaining useful life of four years while 40% of the said inventory remained unsold at the end of 2020. For the year ended December 31, 2020, HULK reported net income of P1,000000 and declared dividends of P150,000 in the separate financial statements while HALL reported net income of P150,000 and declared dividends of P20,000 in the separate financial statements. HULK accounted the investment in HALL using cost method in the separate financial statements. 3. What is the non-controlling interest in net assets on December 31, 2020? C. P126,000 D. P133,800 А. P124,800 В. P130,200 What is the consolidated net income attributable to parent shareholders for the year ended December 31, 2020? А. В. 4. C. P1,102,200 P1,162,200 P1,141,200 D. P1,095,200 5. What is the amount of consolidated retained earnings on December 31, 2020? А. P2,952,200 P3,012,200 P2,991,200 С. В. D. P2,945,200
On January 1, 2020, HULK CORP. acquired 70% of outstanding ordinary shares of HALL INC. at a price of P210,000. On the same date, the net assets of HALL INC. were reported at P260,000. On January 1, 2020 HULK reported retained earnings of P2,000,000 while HALL reported retained earnings of P200,000. All of the assets and liabilities of HALL are fairly valued except machinery which is undervalued by P80,000 and in inventory which is overvalued by P10,000. The said machinery has a remaining useful life of four years while 40% of the said inventory remained unsold at the end of 2020. For the year ended December 31, 2020, HULK reported net income of P1,000000 and declared dividends of P150,000 in the separate financial statements while HALL reported net income of P150,000 and declared dividends of P20,000 in the separate financial statements. HULK accounted the investment in HALL using cost method in the separate financial statements. 3. What is the non-controlling interest in net assets on December 31, 2020? C. P126,000 D. P133,800 А. P124,800 В. P130,200 What is the consolidated net income attributable to parent shareholders for the year ended December 31, 2020? А. В. 4. C. P1,102,200 P1,162,200 P1,141,200 D. P1,095,200 5. What is the amount of consolidated retained earnings on December 31, 2020? А. P2,952,200 P3,012,200 P2,991,200 С. В. D. P2,945,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2020, HULK CORP. acquired 70% of outstanding ordinary shares of HALL
INC. at a price of P210,000. On the same date, the net assets of HALL INC. were
reported at P260,000. On January 1, 2020 HULK reported retained earnings of
P2,000,000 while HALL reported retained earnings of P200,000.
All of the assets and liabilities of HALL are fairly valued except machinery which is
undervalued by P80,000 and in inventory which is overvalued by P10,000. The said
machinery has a remaining useful life of four years while 40% of the said inventory
remained unsold at the end of 2020.
For the year ended December 31, 2020, HULK reported net income of P1,000000 and
declared dividends of P150,000 in the separate financial statements while HALL reported
net income of P150,000 and declared dividends of P20,000 in the separate financial
statements.
HULK accounted the investment in HALL using cost method in the separate financial
statements.
3.
What is the non-controlling interest in net assets on December 31, 2020?
А.
P124,800
P130,200
С.
P126,000
P133,800
В.
D.
What is the consolidated net income attributable to parent shareholders for the year
ended December 31, 2020?
P1,102,200
P1,162,200
4.
C.
P1,141,200
P1,095,200
А.
В.
D.
5.
What is the amount of consolidated retained earnings on December 31, 2020?
А.
P3,012,200
P2,991,200
С.
P2,952,200
P2,945,200
В.
D.
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