On September 1, 2019, Plant Co. acquired 75% interest in Zombie Co. On this date, Zombie's net identifiable assets have a carrying amount of ₱180,000, which approximates fair value. In December 2019, Zombie sold goods to Plant for ₱81,000. Zombie had marked up these goods by 50% based on cost. One-third of these goods remain unsold at year-end. The group assessed that there is no impairment loss on goodwill for the current year. The individual statements of profit or loss of the entities for the year ended December 31, 2019 are shown below:
On September 1, 2019, Plant Co. acquired 75% interest in Zombie Co. On this date, Zombie's net identifiable assets have a carrying amount of ₱180,000, which approximates fair value.
In December 2019, Zombie sold goods to Plant for ₱81,000. Zombie had marked up these goods by 50% based on cost. One-third of these goods remain unsold at year-end. The group assessed that there is no impairment loss on
The individual statements of profit or loss of the entities for the year ended December 31, 2019 are shown below:
|
Plant Co. |
Zombie Co. |
|
|
Revenue |
1,000,000 |
720,000 |
|
Cost of sales |
(400,000) |
(300,000) |
|
Gross profit |
600,000 |
420,000 |
|
Distribution costs |
(200,000) |
(100,000) |
|
Administrative costs |
(80,000) |
(45,000) |
|
Profit before tax |
320,000 |
275,000 |
|
Income tax expense |
(96,000) |
(95,000) |
|
Profit after tax |
224,000 |
180,000 |
All of Zombie’s income and expenses (including profit from intercompany sale) were earned and incurred evenly during the year.
How much is the profit attributable to Owners and NCI
a. 262,000 & 13,000 b. 224,000 & 60,000 c. 262,250 & 12,750 d. 256,250 & 45,750
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