On January 1, 2021, Bass Co. issued equity instruments in exchange for 75% interest in Guitar Co. On acquisition date, Bass Co. elected to measure non-controlling interest at fair value. Bass Co.'s management balieves that the fair value of the consideration transferred correlates to the fair value of the controlling interest acquired and that the fair value of the controlling interest is proportionate to the fair value of the remaining interest. Guitar Co's net identifiable assets have carrying amount and fair value of 2300,000 and P360,000, respectively. The difference is attributable to a buildirg with a remaining usefullife of 5 years. The December 31, 2021 statements of financial postilon of Bass Co. and Gultar Co. are summarized below. Rnss Ca Guitar Cn. ASSETS Investment in subsidiary (at cost) Other assets TOTAL ASSETS 300,000 1,372,000 1,672,000 496,C00 496,000 LIABILITIES AND EQUITY Trade and other payatıles Share capi tal Retained earnings Total equity TOTAL LIABILITIES AND EQUITY 120,000 200,C00 176,C00 376,000 496,000 292,000 940,000 440,000 1,380,000 1,672,000 No dividends were declared by either entity during year. There were also no inter-company transactions and impairment in goodwill. How much is the non-controlling interest in the net assets of the subsidiary on December 31, 2021?
On January 1, 2021, Bass Co. issued equity instruments in exchange for 75% interest in Guitar Co. On acquisition date, Bass Co. elected to measure non-controlling interest at fair value. Bass Co.'s management balieves that the fair value of the consideration transferred correlates to the fair value of the controlling interest acquired and that the fair value of the controlling interest is proportionate to the fair value of the remaining interest. Guitar Co's net identifiable assets have carrying amount and fair value of 2300,000 and P360,000, respectively. The difference is attributable to a buildirg with a remaining usefullife of 5 years. The December 31, 2021 statements of financial postilon of Bass Co. and Gultar Co. are summarized below. Rnss Ca Guitar Cn. ASSETS Investment in subsidiary (at cost) Other assets TOTAL ASSETS 300,000 1,372,000 1,672,000 496,C00 496,000 LIABILITIES AND EQUITY Trade and other payatıles Share capi tal Retained earnings Total equity TOTAL LIABILITIES AND EQUITY 120,000 200,C00 176,C00 376,000 496,000 292,000 940,000 440,000 1,380,000 1,672,000 No dividends were declared by either entity during year. There were also no inter-company transactions and impairment in goodwill. How much is the non-controlling interest in the net assets of the subsidiary on December 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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