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On January 1 2021 ABC acquired 90% of DEF. Analysis of data relative to this purchase indicates that goodwill of P70,000 was acquired in this purchase. The goodwill is unimpaired. On July 1, 2021, DEF sold a patent to ABC. The sales price was P140,000. DEF's books value was P70,000. DEF estimates that the patent has a life of 5 years and no salvage value. It will use straight line depreciation. For 2023, ABC's net income is P560,000 from its own operations. DEF had net income of P140,000. The 2023 net income attributable to equity holders of ABC is

On January 1 2021 ABC acquired 90% of DEF. Analysis of data relative to this purchase indicates that goodwill of P70,000 was acquired in this purchase. The goodwill is unimpaired. On July 1, 2021, DEF sold a patent to ABC. The sales price was P140,000. DEF's books value was P70,000. DEF estimates that the patent has a life of 5 years and no salvage value. It will use straight line depreciation. For 2023, ABC's net income is P560,000 from its own operations. DEF had net income of P140,000. The 2023 net income attributable to equity holders of ABC is

FINANCIAL ACCOUNTING
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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On January 1 2021 ABC acquired 90% of DEF. Analysis of data relative to this purchase indicates that goodwill of P70,000 was acquired in this purchase. The goodwill is unimpaired. On July 1, 2021, DEF sold a patent to ABC. The sales price was P140,000. DEF's books value was P70,000. DEF estimates that the patent has a life of 5 years and no salvage value. It will use straight line depreciation. For 2023, ABC's net income is P560,000 from its own operations. DEF had net income of P140,000. The 2023 net income attributable to equity holders of ABC is:

 

623,000

616,000

637,000

629,300

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