Plum Corporation acquired 80% of Slum Co. for P 5,000,000 on January 2, 2019. On this date, Slam Co. reported Ordinary share capital of P 3,000,000 and Retained Eamings of P2,000,000 Change in assets to fair values were undervaluation of P 300,000 and P 400,000 in Equipment and Building respectively. Both assets have 10-year remaining useful life. An annual review revealed that goodwill has not been impaired. 4. Slam Co. earned income and paid dividends as follows: 2019 2020 2021 Net Income 1,000,000 400,000 1,200,000 500,000 1,3000,000 600,000 Dividends The Non-Controlling interest in the net income of Slam Co. at December 31, 2020 is: a. P140,000 b. P184,000 c. P226,000 d. P240,000 bomalo to 5. The NCI at December 31, 2021 assuming Plum Corp. opted to measure NCI at fair Value is: gmo a. P800,000 b. P1,078,000 20 c. P1,400,000 d. P1,608,000 000,08 woll d big ebnghvib bns beho 000 00E 000
Plum Corporation acquired 80% of Slum Co. for P 5,000,000 on January 2, 2019. On this date, Slam Co. reported Ordinary share capital of P 3,000,000 and Retained Eamings of P2,000,000 Change in assets to fair values were undervaluation of P 300,000 and P 400,000 in Equipment and Building respectively. Both assets have 10-year remaining useful life. An annual review revealed that goodwill has not been impaired. 4. Slam Co. earned income and paid dividends as follows: 2019 2020 2021 Net Income 1,000,000 400,000 1,200,000 500,000 1,3000,000 600,000 Dividends The Non-Controlling interest in the net income of Slam Co. at December 31, 2020 is: a. P140,000 b. P184,000 c. P226,000 d. P240,000 bomalo to 5. The NCI at December 31, 2021 assuming Plum Corp. opted to measure NCI at fair Value is: gmo a. P800,000 b. P1,078,000 20 c. P1,400,000 d. P1,608,000 000,08 woll d big ebnghvib bns beho 000 00E 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
4, 5, 6, 7, 8, 9, and 10
I need clear solutions pls
Transcribed Image Text:CHAPTER 3: CONSOLIDATION
DATE OF ACQUISITION
SUBSEQUENT TO
Page | 123
6.
The balance of the investment account at December 31, 2021 is:
P5,924,000
b. P5,000,000
c. P5,744,000
d. P7,660,000
a.
7.
The dividends income of Plum Co. from Slam Co.in 2021 is
a. P480,000
b. P948,000
с. Р560,000
d. P504,000
8. Accountancy Company acquired 75% of outstanding ordinary shares of Finance Company
for P900,000. Book value of Finance Company's net assets is P1,000,000. Upon re-
measurement of acquires net assets, it shows that inventory has a fair value lower by
P40,000 than its book value and equipment held for 3 years has a fair value and book
value of P450,000 and P360,000, respectively. The original cost of Finance Company's
equipment is P576,000 with no residual value. Accountancy opt to measure NCI at fair
value of P275,000. During the year Accountancy reported net income from own operation
of P300,000 and received P30,000 dividend from Finance. Finance Company's net
income amounts to P120,000. Goodwill, if partial, is impaired by P13,500.
Compute the consolidated net income.
a. P424,000
b. P439,000
c. P427,000
d. P394,000
9.
Refer to #8, Non-Controlling Interest in Net Assets of Subsidiary at the end is:
a. P296,000
b. P298,500
с. Р299,000
d. P286,500
10. Refer to #8, Net income attributable to Accountancy Company is:
P393,000
b. P376,500
с. Р390,000
d. P406,500
a.
Transcribed Image Text:Plum Corporation acquired 80% of Slum Co. for P 5,000,000 on January 2, 2019. On this
date, Slam Co. reported Ordinary share capital of P 3,000,000 and Retained Earmings of
P2,000,000 Change in assets to fair values were undervaluation of P 300,000 and P
400,000 in Equipment and Building respectively. Both assets have 10-year remaining
useful life. An annual review revealed that goodwill has not been impaired.
4.
Slam Co. earned income and paid dividends as follows:
2019
2020
2021
Net Income
1,000,000
400,000
1,200,000
1,3000,000
600,000
Dividends
500,000
The Non-Controlling interest in the net income of Slam Co. at December 31, 2020 is:
a. P140,000
b. P184,000
с. Р226,000
d. P240,000
bomalo
5.
The NCI at December 31, 2021 assuming Plum Corp. opted to measure NCI at fair Value
is:
a. P800,000
b. P1,078,000
c. P1,400,000
d. P1,608,000
000,08
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