On January 1,2016, P Company purchased 80 percent of the outstanding shares of S Company by paying P650,000. On that date, S Company had P300,000 capital stock and P500,000 of retained earnings. An undervalued asset attributable to building amounting to P75,000 with a remaining life of 25 years. All other assets and liabilities of S Company has book value approximated their fair market value. On January 1,2017, P's common stock and retained earnings amounted to P1,000,000 AND P800,000, respectively, while S Company's retained earnings is P600,000. The 2017 net income and dividends using cost (initial value) model was as follows: P Company S Company Net Income 340,000 100,000 Dividends 150,000 50,000 April 1,2017, S Company sold equipment with a book value of P30,000 to P Company for P60,000. The gain on the sale is included in the net income of S Company indicated above. The equipment is expected to have a remaining useful life of five years from the date of the sale.On September 30,2017, P Company sold machinery with a book value of P40,000 to S Company for P75,000. The gain on the sale is also included in the net income of P Company indicated above. The machinery is expected to last for ten years from the date of sale. The non-controlling interest on December 31, 2017.
On January 1,2016, P Company purchased 80 percent of the outstanding shares of S Company by paying P650,000. On that date, S Company had P300,000 capital stock and P500,000 of retained earnings. An undervalued asset attributable to building amounting to P75,000 with a remaining life of 25 years. All other assets and liabilities of S Company has book value approximated their fair market value. On January 1,2017, P's common stock and retained earnings amounted to P1,000,000 AND P800,000, respectively, while S Company's retained earnings is P600,000. The 2017 net income and dividends using cost (initial value) model was as follows: P Company S Company Net Income 340,000 100,000 Dividends 150,000 50,000 April 1,2017, S Company sold equipment with a book value of P30,000 to P Company for P60,000. The gain on the sale is included in the net income of S Company indicated above. The equipment is expected to have a remaining useful life of five years from the date of the sale.On September 30,2017, P Company sold machinery with a book value of P40,000 to S Company for P75,000. The gain on the sale is also included in the net income of P Company indicated above. The machinery is expected to last for ten years from the date of sale. The non-controlling interest on December 31, 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What is the non-controlling interest on December 31, 2017
a. 208,700
b. 189,300
c. 174,900
d. 173,100
Transcribed Image Text:On January 1,2016, P Company purchased 80 percent of the outstanding shares of S Company
by paying P650,000. On that date, S Company had P300,000 capital stock and P500,000 of
retained earnings. An undervalued asset attributable to building amounting to P75,000 with
a remaining life of 25 years. All other assets and liabilities of S Company has book value
approximated their fair market value.
On January 1,2017, P's common stock and retained earnings amounted to P1,000,000 AND
P800,000, respectively, while S Company's retained earnings is P600,000.
The 2017 net income and dividends using cost (initial value) model was as follows:
P Company
S Company
Net Income
340,000
100,000
Dividends
150,000
50,000
April 1,2017, S Company sold equipment with a book value of P30,000 to P Company for
P60,000. The gain on the sale is included in the net income of S Company indicated above.
The equipment is expected to have a remaining useful life of five years from the date of the
sale.On September 30,2017, P Company sold machinery with a book value of P40,000 to S
Company for P75,000. The gain on the sale is also included in the net income of P Company
indicated above. The machinery is expected to last for ten years from the date of sale.
The non-controlling interest on December 31, 2017.
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