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Problem: Dia Corp. acquired a 70% interest in Rubie Co. in 2021. For the year ended December 31, 2021 and 2022, Rubie Co reported net income of P160,000 and P180,000, respectively. During 2021, Rubie sold merchandise to Dia Corp. for P20,000 at a profit of P4,000. The merchandise was later resold by Dia Corp. to outsider for P30,000 during 2022. Required: For consolidation purposes, what is the non-controlling interest's share of Room's net income for 2021. • For consolidation purposes, what is the non-controlling interest's share of Room's net income for 2022.

Problem: Dia Corp. acquired a 70% interest in Rubie Co. in 2021. For the year ended December 31, 2021 and 2022, Rubie Co reported net income of P160,000 and P180,000, respectively. During 2021, Rubie sold merchandise to Dia Corp. for P20,000 at a profit of P4,000. The merchandise was later resold by Dia Corp. to outsider for P30,000 during 2022. Required: For consolidation purposes, what is the non-controlling interest's share of Room's net income for 2021. • For consolidation purposes, what is the non-controlling interest's share of Room's net income for 2022.

FINANCIAL ACCOUNTING
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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Topic: Intercompany Profits (Sale of Merchandise, Land and Depreciable Assets) Problem: Dia Corp. acquired a 70% interest in Rubie Co. in 2021. For the year ended December 31, 2021 and 2022, Rubie Co reported net income of P160,000 and P180,000, respectively. During 2021, Rubie sold merchandise to Dia Corp. for P20,000 at a profit of P4,000. The merchandise was later resold by Dia Corp. to outsider for P30,000 during 2022. Required: • For consolidation purposes, what is the non-controlling interest's share of Room's net income for 2021. • For consolidation purposes, what is the non-controlling interest's share of Room's net income for 2022.
Transcribed Image Text:Topic: Intercompany Profits (Sale of Merchandise, Land and Depreciable Assets) Problem: Dia Corp. acquired a 70% interest in Rubie Co. in 2021. For the year ended December 31, 2021 and 2022, Rubie Co reported net income of P160,000 and P180,000, respectively. During 2021, Rubie sold merchandise to Dia Corp. for P20,000 at a profit of P4,000. The merchandise was later resold by Dia Corp. to outsider for P30,000 during 2022. Required: • For consolidation purposes, what is the non-controlling interest's share of Room's net income for 2021. • For consolidation purposes, what is the non-controlling interest's share of Room's net income for 2022.
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