On January 2, 2019, U Co. purchased 75% of the outstanding shares of N Co. resulting to a goodwill of P60,000. On that date, the non-cash assets of N Co. whose book values did not equal their book values were accounts receivable which was overstated by P4,500 and equipment with a remaining 5 year life on the purchase date which was understated by P50,000. For the year 2010, U and N reported net income of P350,000 and P200,000 each respectively. U’s beginning inventory included merchandise purchased from N Company amounting to P39,000 which was sold to them by N at a 30% markup, 80% of these goods were sold during the year. N, on the other hand, included inventory items which they purchased from U Co. amounting to 18,000. These goods were sold by U at a 25% markup. 90% of these goods were sold by N for the year. a. Determine the consolidated net income for 2020. b. What is the Noncontrolling interest's share in the Net income of the subsidiary?
On January 2, 2019, U Co. purchased 75% of the outstanding shares of N Co. resulting to a
a. Determine the consolidated net income for 2020.
b. What is the Noncontrolling interest's share in the Net income of the subsidiary?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
compute for the Equity Shareholder's Net Income
Using the same information in #5, compute for the Equity Shareholder's Net Income