.44 PARENT Corporation acquired 80% of the outstanding shares of SUBSIDIARY Company on June 1,2022 for P3,517,500. SUBSIDIARY Company's stockholder's equity components at the end of this yearare as follows; Ordinary shares, P100 par, P1,500,000. Share premium P675,000 and Retained EarningsP1,335,000. Non-controlling interest is measured at fair value and the fair value is P705,000. Theassets of SUBSIDIARY were fairly valued, except for inventories, which are overstated by P66,000 andequipment, which was understated by P90,000. Remaining useful life of equipment is 4 years.Stockholder's equity of PARENT on January 1, 2022 is composed of Ordinary shares P4,500O,000, Sharepremium P1,050,000, Retained Earnings P3,150,000. Goodwill, if any, should be written down byP85,350 at year-end. Net Income for the first year of parent is P450,000 and the net income ofsubsidiary from the date of acquisition is P255,000. Dividends declared at the end of the yearamounted to P120,000 and P90,000 for PARENT and SUBSIDIARY, respectively. During the year, therewas no issuance of new ordinary shares. (INPUT YOUR ANSWERS IN FIGURES. DO NOT PUT ANYCOMMA, PESO SIGN, DECIMALS, AND EXTRA SPACES)1. How much is the non-controlling interest in net assets on December 31, 2022?2. What is the amount of consolidated shareholder's equity?

Introduction' Non controlling interest means where stakeholder has less than 50 % equity and has no…

PARENT Corporation acquired 80% of the outstanding shares of SUBSIDIARY Company on June 1, 2022 for P3,517,500. SUBSIDIARY Company's stockholder's equity components at the end of this year are as follows; Ordinary shares, P100 par, P1,500,000. Share premium P675,000 and Retained Earnings P1,335,000. Non-controlling interest is measured at fair value and the fair value is P705,000. The assets of SUBSIDIARY were fairly valued, except for inventories, which are overstated by P66,000 and equipment, which was understated by P90,000. Remaining useful life of equipment is 4 years.

PARENT Corporation acquired 80% of the outstanding shares of SUBSIDIARY Company on June 1, 2022 for P3,517,500. SUBSIDIARY Company's stockholder's equity components at the end of this year are as follows; Ordinary shares, P100 par, P1,500,000. Share premium P675,000 and Retained Earnings P1,335,000. Non-controlling interest is measured at fair value and the fair value is P705,000. The assets of SUBSIDIARY were fairly valued, except for inventories, which are overstated by P66,000 and equipment, which was understated by P90,000. Remaining useful life of equipment is 4 years.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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