Parent Company issued 80,000 new shares of its P10 par value ordinary shares and paid cash of P2,000,000 for the 80% interest of Subsidiary Company on January 2, 2022. The share of Parent was valued at P15. The stockholders’ equity of Parent and Subsidiary at the date of acquisition were as follows (see image below). The fair value and book value of Subsidiary’s identifiable assets and liabilities were the same except for inventory which was undervalued by P50,000 and Equipment which was underdepreciated by P100,000 with remaining useful life of 10 years. The parent elected to measure NCI using fair value method. At the end of December 31, 2022, Parent reported a net income of P300,000 and paid dividends of P50,000 while Subsidiary reported a net income of P200,000 and paid dividends of P20,000 to Parent. Only 75% of the beginning inventory of Subsidiary was sold during the period. It was also determined that the goodwill was impaired and to be reported at P800,000. a. How much is the Net Income Attributable to Parent? b. How much is the Non-Controlling Interest at December 31, 2022? c. How much is the Consolidated Net Income?
Parent Company issued 80,000 new shares of its P10 par value ordinary shares and paid cash of P2,000,000 for the 80% interest of Subsidiary Company on January 2, 2022. The share of Parent was valued at P15. The
The fair value and book value of Subsidiary’s identifiable assets and liabilities were the same except for inventory which was undervalued by P50,000 and Equipment which was underdepreciated by P100,000 with remaining useful life of 10 years. The parent elected to measure NCI using fair value method. At the end of December 31, 2022, Parent reported a net income of P300,000 and paid dividends of P50,000 while Subsidiary reported a net income of P200,000 and paid dividends of P20,000 to Parent. Only 75% of the beginning inventory of Subsidiary was sold during the period. It was also determined that the
a. How much is the Net Income Attributable to Parent?
b. How much is the Non-Controlling Interest at December 31, 2022?
c. How much is the Consolidated Net Income?
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