On January 1, 20x5, Paz acquired 80% of Shey outstanding ordinary shares for P950,000. Paz uses the cost method to record the investment account. The statement of financial position of Paz and Shey on December 31, 20x1 are as follows: Paz Shey Cash 2,500,000 1,000,000 Accounts receivables 500,000 250,000 Inventory 800,000 200,000 Investment in Shey 950,000 - Land 2,000,000 - Building - net 1,200,000 - Equipment - net 600,000 500,000 Total 8,550,000 1,950,000 Current liabilities 750,000 500,000 Ordinary shares 3,000,000 650,000 Share premium 500,000 100,000 Retained earnings 4,300,000 700,000 Total 8,550,000 1,950,000 On January 1, 20x5, the assets and liabilities at book value of Shey approximates its fair value except for the inventory and equipment which is undervalued by P50,000 and P20,000, respectively. The equipment has a remaining useful life of 5 years. Paz measures the NCI at proportionate share basis. On December 31, 20x5, Paz reported net income of P1,000,000 and paid dividends of P400,000 while Shey reported net income of P400,000 and paid dividend of P80,000 to Paz. What is the amount of consolidated assets on December 31, 20x5? What is the total non-controlling interest in net income of subsidiary (NCINIS) on December 31, 20x5?
On January 1, 20x5, Paz acquired 80% of Shey outstanding ordinary shares for P950,000. Paz uses the cost method to record the investment account. The statement of financial position of Paz and Shey on December 31, 20x1 are as follows:
|
Paz |
Shey |
|
|
Cash |
2,500,000 |
1,000,000 |
|
Accounts receivables |
500,000 |
250,000 |
|
Inventory |
800,000 |
200,000 |
|
Investment in Shey |
950,000 |
- |
|
Land |
2,000,000 |
- |
|
Building - net |
1,200,000 |
- |
|
Equipment - net |
600,000 |
500,000 |
|
Total |
8,550,000 |
1,950,000 |
|
Current liabilities |
750,000 |
500,000 |
|
Ordinary shares |
3,000,000 |
650,000 |
|
Share premium |
500,000 |
100,000 |
|
|
4,300,000 |
700,000 |
|
Total |
8,550,000 |
1,950,000 |
On January 1, 20x5, the assets and liabilities at book value of Shey approximates its fair value except for the inventory and equipment which is undervalued by P50,000 and P20,000, respectively. The equipment has a remaining useful life of 5 years. Paz measures the NCI at proportionate share basis.
On December 31, 20x5, Paz reported net income of P1,000,000 and paid dividends of P400,000 while Shey reported net income of P400,000 and paid dividend of P80,000 to Paz.
What is the amount of consolidated assets on December 31, 20x5?
What is the total non-controlling interest in net income of subsidiary (NCINIS) on December 31, 20x5?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
