Philippians Company purchased 60% of Seth Company on January 2, 2022 for P3,930,000 when Seth's book, value was P6,300,000. On that day, the market value of the net assets of Seth equaled their book values with the following exceptions: Buildings Equipment Book value P1,850,000 300,000 Market value Remaining life P1,600,000 20 years 500,000 10 years Seth Company reported the following for 2022 and 2023: Net income (loss) Dividends 2022 2023 P 750,000 150,000 P100,000 50.000

Philippians Company purchased 60% of Seth Company on January 2, 2022 for P3,930,000 when Seth's book, value was P6,300,000. On that day, the market value of the net assets of Seth equaled their book values with the following exceptions: Buildings Equipment Book value P1,850,000 300,000 Market value Remaining life P1,600,000 20 years 500,000 10 years Seth Company reported the following for 2022 and 2023: Net income (loss) Dividends 2022 2023 P 750,000 150,000 P100,000 50.000

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Requirements
1. How much is the consolidated net
income for 2022?
2. How much is the consolidated net
income for 2023?
3. Using the proportionate method, how
much is the non-controlling interest as
December 31, 2023?
Philippians Company purchased 60% of Seth Company on January 2,
2022 for P3,930,000 when Seth's book, value was P6,300,000. On that
day, the market value of the net assets of Seth equaled their book values.
with the following exceptions:
Buildings
Equipment
Book value
P1,850,000
300,000
Market value Remaining life
P1,600,000
20 years
500,000
10 years
Seth Company reported the following for 2022 and 2023:
Net income (loss)
Dividends
P.750,000
150,000
2022
2023
P100,000
50,000

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