Pag ibig Corporation acquired 75% of outstanding stocks of Sagigilid Company on January 1, 2019, for P450,000 in cash. Sagigilid Company had a book value of P480,000 on that date. NCI and goodwill were to be measured using the partial goodwill approach. However, an equipment with a 7-year life was overvalued by P35,000 on Sagigilid Company’s financial statement. Also, a building with a 25-year life and land were undervalued by P50,000 and P25,000 respectively. Subsequent to acquisition, Sagigilid Company reported the following: Year CI Dividends Paid 2019 60,000 12,000 2020 80,000 25,000 2021 120,000 50,000 In accounting for investment, Pag ibig Company uses the cost method. Selected accounts taken from the financial records of these two companies as of December 31, 2021 are as follows: PAGIBIG CORP SAGIGILID CO. Revenues – Operating 500,000 450,000 Expenses 350,000 330,000 Equipment (net) 450,000 90,000 Buildings (net) 600,000 120,000 Common Stock 300,000 100,000 Retained Earnings, 12/31/21 800,000 433,000 The goodwill was determined to be impaired on December 31, 2021 by P20,000 which is based on the grossed-up goodwill. Determine the following account balances as if December 31, 2021. You will be required to compute for the listed below in the following order. Investment in Sagigilid Company (on Pagibig corp’s individual financial records)
Pag ibig Corporation acquired 75% of outstanding stocks of Sagigilid Company on January 1, 2019, for P450,000 in cash. Sagigilid Company had a book value of P480,000 on that date. NCI and
Year CI Dividends Paid
2019 60,000 12,000
2020 80,000 25,000
2021 120,000 50,000
In accounting for investment, Pag ibig Company uses the cost method. Selected accounts taken from the financial records of these two companies as of December 31, 2021 are as follows:
PAGIBIG CORP SAGIGILID CO.
Revenues – Operating 500,000 450,000
Expenses 350,000 330,000
Equipment (net) 450,000 90,000
Buildings (net) 600,000 120,000
Common Stock 300,000 100,000
The goodwill was determined to be impaired on December 31, 2021 by P20,000 which is based on the grossed-up goodwill.
Determine the following account balances as if December 31, 2021. You will be required to compute for the listed below in the following order.
- Investment in Sagigilid Company (on Pagibig corp’s individual financial records)
- Non-controlling interest on the consolidated financial statements
- Consolidated Comprehensive Income
- Comprehensive income attributable to NCI
- Consolidated Equipment (net)
- Consolidated Buildings (net)
- Consolidated land
- Consolidated goodwill (net)
- Consolidated common stock.
- Consolidated retained earnings, 12/31/2021.
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