PROBLEM III.On January 1, 2020, P Corporation purchase 80% of S Company's ordinary share for P810,000. P37,500 of the excess isattributable to goodwill and the balance to depreciable asset with economic life of ten years. NCI is measured at fair valueon the date of acquisition. On this date, shareholders' equity of the two companies were as follows:P CorporationS CompanyOrdinary shareP1,312,500P300,000Retained earnings1,950,000525,000On December 31, 2020, S Company reported net income of P131,250 and paid dividends of P45,000 to Party. Party reportedearnings from its own operations of 356,250 and paid dividends of P172,500. Goodwill has been impaired and should bereported at P7,500 on December 31, 2020.latlecomeoltolbutable-te-perent.NCINIS3. NCINAS4. Consolidated retained earnings5. Consolidated Shareholders' Equity

Consolidation: Consolidation refers to the process of combining the financial statements of multiple…

PROBLEM III. On January 1, 2020, P Corporation purchase 80% of S Company's ordinary share for P810,000. P37,500 of the excess is attributable to goodwill and the balance to depreciable asset with economic life of ten years. NCI is measured at fair value on the date of acquisition. On this date, shareholders' equity of the two companies were as follows: P Corporation S Company P1,312,500 1,950,000 Ordinary share Retained earnings On December 31, 2020, S Company reported net income of P131,250 and paid dividends of P45,000 to Party. Party reported earnings from its own operations of 356,250 and paid dividends of P172,500. Goodwill has been impaired and should be reported at P7,500 on December 31, 2020. table-to-perent. Not leen NCINIS 3. NCINAS 4. Consolidated retained earnings 5. Consolidated Shareholders' Equity P300,000 525,000

PROBLEM III. On January 1, 2020, P Corporation purchase 80% of S Company's ordinary share for P810,000. P37,500 of the excess is attributable to goodwill and the balance to depreciable asset with economic life of ten years. NCI is measured at fair value on the date of acquisition. On this date, shareholders' equity of the two companies were as follows: P Corporation S Company P1,312,500 1,950,000 Ordinary share Retained earnings On December 31, 2020, S Company reported net income of P131,250 and paid dividends of P45,000 to Party. Party reported earnings from its own operations of 356,250 and paid dividends of P172,500. Goodwill has been impaired and should be reported at P7,500 on December 31, 2020. table-to-perent. Not leen NCINIS 3. NCINAS 4. Consolidated retained earnings 5. Consolidated Shareholders' Equity P300,000 525,000

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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