On January 1, 2021, CBA acquires 60% of outstanding ordinary shares of LPU at a gain on bargain purchase of P40,000. For the year ended December 31, 2022, CBA and LPU reported sales revenue of P2,000,000 and P1,000,000 in their respective separate income statements. At the same year, CBA and LPU reported cost of sales of P1,200,000 and P700,000 in their respective separate income statements. During 2021, CBA sold inventory to LPU at a selling price of P280,000 with gross profit rate of 40% based on cost. On the other hand, LPU sold inventory to CBA at a selling price of P400,000 with gross profit rate of 30% based on sales during 2022. On December 31, 2021, ¼ of the goods coming from CBA remained in LPU’s inventory but all were eventually sold to third persons during 2022. As of December 31, 2022, 2/5 of the goods coming from LPU were eventually sold to third persons. For the year ended December 31, 2022, CBA reported net income of P500,000 while LPU reported net income of P200,000 and distributed dividends of P50,000. CBA accounted for its inventory in LPU using cost method in its separate financial statements. • What is the consolidated sales revenue for the year ended December 31, 2022? • What is the consolidated gross profit for the year ended December 31, 2022? • What is the noncontrolling interest in net income for the year ended December 31, 2022? • What is the consolidated net income attributable to parent’s shareholders for the year ended December 31, 2022? • What is the noncontrolling interest in net income for the year ended December 31, 2022? • What is the consolidated net income attributable to parent’s shareholders for the year ended December 31, 2022?
On January 1, 2021, CBA acquires 60% of outstanding ordinary shares of LPU at a gain on bargain purchase
of P40,000. For the year ended December 31, 2022, CBA and LPU reported sales revenue of P2,000,000
and P1,000,000 in their respective separate income statements. At the same year, CBA and LPU reported
cost of sales of P1,200,000 and P700,000 in their respective separate income statements.
During 2021, CBA sold inventory to LPU at a selling price of P280,000 with gross profit rate of 40%
based on cost. On the other hand, LPU sold inventory to CBA at a selling price of P400,000 with gross
profit rate of 30% based on sales during 2022.
On December 31, 2021, ¼ of the goods coming from CBA remained in LPU’s inventory but all were
eventually sold to third persons during 2022. As of December 31, 2022, 2/5 of the goods coming from LPU
were eventually sold to third persons. For the year ended December 31, 2022, CBA reported net income of
P500,000 while LPU reported net income of P200,000 and distributed dividends of P50,000. CBA accounted
for its inventory in LPU using cost method in its separate financial statements.
• What is the consolidated sales revenue for the year ended December 31, 2022?
• What is the consolidated gross profit for the year ended December 31, 2022?
• What is the noncontrolling interest in net income for the year ended December 31, 2022?
• What is the consolidated net income attributable to parent’s shareholders for the year ended
December 31, 2022?
• What is the noncontrolling interest in net income for the year ended December 31, 2022?
• What is the consolidated net income attributable to parent’s shareholders for the year ended
December 31, 2022?
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