On May 1, 2021, P Corp. purchased 75% of S Co.’s P10 par ordinary shares for P990,000. On this date, the carrying amount of S’s net assets was P1,000,000. The fair values of S Co.’s identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net), which were P150,000 in excess of the carrying amount. The estimated remaining life of the asset is 5 years. For the year ended December 31, 2021, S had net income of P320,000 and paid cash dividends to P Corp. of P115,000 (all coming from post-acquisition Retained Earnings). Loss on impairment of goodwill in 2021 amounted to P20,000. P Corp. uses the fair value method in measuring non-controlling interest. Revenues were earned evenly throughout the year. Determine the non-controlling interest in net income of subsidiary on December 31, 2021.
On May 1, 2021, P Corp. purchased 75% of S Co.’s P10 par ordinary
shares for P990,000. On this date, the carrying amount of S’s net assets
was P1,000,000. The fair values of S Co.’s identifiable assets and
liabilities were the same as their carrying amounts except for plant assets
(net), which were P150,000 in excess of the carrying amount. The
estimated remaining life of the asset is 5 years. For the year ended
December 31, 2021, S had net income of P320,000 and paid cash
dividends to P Corp. of P115,000 (all coming from post-acquisition
P20,000. P Corp. uses the fair value method in measuring non-controlling
interest. Revenues were earned evenly throughout the year.
Determine the non-controlling interest in net income of subsidiary on
December 31, 2021.
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