On January 2, 2020, Popsters Corporation purchased 80% of SG Corporation's ordinary shares for P648,000. P30,000 of the excess is attributable to goodwill and the balance to an equipment with an economic life of ten years. Non-controlling interest is measured at its fair value on date of acquisition. On the date of acquisition, stockholders' equity of the two companies were as follows: Popsters 1,050,000 240,000 1,560,000 420,000 On December 31, 2020, Subsidiary reported net income of P105,000 and paid dividends of P36,000 to Parent. Parent reported earnings from its separate operations of P285,000 and paid dividends of P138,000. Goodwill had been impaired and should be reported at P6,000 on December 31, 2020. Share Capital Retained Earnings SG

On January 2, 2020, Popsters Corporation purchased 80% of SG Corporation's ordinary shares for P648,000. P30,000 of the excess is attributable to goodwill and the balance to an equipment with an economic life of ten years. Non-controlling interest is measured at its fair value on date of acquisition. On the date of acquisition, stockholders' equity of the two companies were as follows: Popsters 1,050,000 240,000 1,560,000 420,000 On December 31, 2020, Subsidiary reported net income of P105,000 and paid dividends of P36,000 to Parent. Parent reported earnings from its separate operations of P285,000 and paid dividends of P138,000. Goodwill had been impaired and should be reported at P6,000 on December 31, 2020. Share Capital Retained Earnings SG

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 58E: Capital Stock Refer to the information for Stahl Company above. Required: What is the amount of...

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