Pentagon Company acquires 80% of Square Company for P500,000 on January 1, 2012. On that date, Square's common stock and retained earnings amounted to P200,000. Inventory was overvalued by P10,000, equipment (10-year remaining life) was undervalued by P30,000 and buildings (10-year remaining life) were undervalued by P40,000. Any excess consideration is attributable to goodwill. From 2012 to 2014, Square earns income and pay dividends as follows: 2012 2013 2014 Net income P100,000 P120,000 P130,000 Dividends 40,000 50,000 60,000 What amount is the non-controlling interest in net income of Square for the year ended December 31, 2012? A. P12,600 B. P20,000 C. P16,600

Pentagon Company acquires 80% of Square Company for P500,000 on January 1, 2012. On that date, Square's common stock and retained earnings amounted to P200,000. Inventory was overvalued by P10,000, equipment (10-year remaining life) was undervalued by P30,000 and buildings (10-year remaining life) were undervalued by P40,000. Any excess consideration is attributable to goodwill. From 2012 to 2014, Square earns income and pay dividends as follows: 2012 2013 2014 Net income P100,000 P120,000 P130,000 Dividends 40,000 50,000 60,000 What amount is the non-controlling interest in net income of Square for the year ended December 31, 2012? A. P12,600 B. P20,000 C. P16,600

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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