PHONE acquired 65% of CHARGER’s voting ordinary shares for P468,000, P108,000 above the net assets of CHARGER’s book value on January 2, 2021. The difference attributable to an equipment which is amortized over 10 years. What is the effect of the purchase difference on the 2023 net income attributable to owners of the parent?

PHONE acquired 65% of CHARGER’s voting ordinary shares for P468,000, P108,000 above the net assets of CHARGER’s book value on January 2, 2021. The difference attributable to an equipment which is amortized over 10 years. What is the effect of the purchase difference on the 2023 net income attributable to owners of the parent?

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.

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PHONE acquired 65% of CHARGER’s voting ordinary shares for P468,000, P108,000 above the net assets of CHARGER’s book value on January 2, 2021.

The difference attributable to an equipment which is amortized over 10 years.

What is the effect of the purchase difference on the 2023 net income attributable to owners of the parent?

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