On January 2, 2020, Pat Corporation acquired 75% of the outstanding common stock of Sol Company for P270,000. The investment was accounted for by the cost method. On January 2, 2020, Sol Company’s identifiable assets (book value and fair value) were P300,000. Sol Company’s comprehensive income for the year ended December 31, 2020 was P160,000. During the year 2020, Pat Corporation received P60,000 cash dividends from Sol Company. There were no other intercompany transactions. The balance of the non-controlling interest (NCI) account on December 31, 2020 is:
On January 2, 2020, Pat Corporation acquired 75% of the outstanding common stock of Sol Company for P270,000. The investment was accounted for by the cost method. On January 2, 2020, Sol Company’s identifiable assets (book value and fair value) were P300,000. Sol Company’s comprehensive income for the year ended December 31, 2020 was P160,000. During the year 2020, Pat Corporation received P60,000 cash dividends from Sol Company. There were no other intercompany transactions. The balance of the non-controlling interest (NCI) account on December 31, 2020 is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 2, 2020, Pat Corporation acquired 75% of the outstanding common stock of Sol Company for P270,000. The investment was accounted for by the cost method. On January 2, 2020, Sol Company’s identifiable assets (book value and fair value) were P300,000. Sol Company’s comprehensive income for the year ended December 31, 2020 was P160,000. During the year 2020, Pat Corporation received P60,000 cash dividends from Sol Company. There were no other intercompany transactions. The balance of the non-controlling interest (NCI) account on December 31, 2020 is:
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