Pi Company owns 85% interest in So Company. During the year, Pi Company reported net income of P200,000 and paid cash dividends of P150,000. So Company reported a net income of P80,000 and paid cash dividends of P40,000. During the year, So Company sold merchandise costing P37,500 to Pi Company at a price that yields a 25% gross profit rate. Pi Company reported that 20% of the shipment from So Company are on hand at December 31. Loss on impairment of goodwill during the year is P10,000. The parent is using full goodwill approach in measuring NCI. The net income attributable to NCI is:

Pi Company owns 85% interest in So Company. During the year, Pi Company reported net income of P200,000 and paid cash dividends of P150,000. So Company reported a net income of P80,000 and paid cash dividends of P40,000. During the year, So Company sold merchandise costing P37,500 to Pi Company at a price that yields a 25% gross profit rate. Pi Company reported that 20% of the shipment from So Company are on hand at December 31. Loss on impairment of goodwill during the year is P10,000. The parent is using full goodwill approach in measuring NCI. The net income attributable to NCI is:

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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