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, 2020.1. Net income attributable to parent2. NCINIS

Net income is the income received after deduction of expenses and taxes.Net income is the actual…

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 Ordinary share Retained earnings P1,312,500 1,950,000 P300,000 525,000 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 m500 31200

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 Ordinary share Retained earnings P1,312,500 1,950,000 P300,000 525,000 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 m500 31200

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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Shohei Ltd owns 100% of Ohtani Ltd acquired on 1 July 2018 for $3 Million when the shareholders funds of Ohtani Ltd were: Share Capital 1,250,000 Retained Earnings 1,200,000 2,450,000 All assets of Ohtani Ltd were stated at fair value on the date of acquisition. (a) the directors believe that there has been an impairment loss on goodwill of $100,000 for the year ended 30 June 2021 (b) During the 2020-21 financial year Shohei Ltd sells inventory to Ohtani Ltd at a sales price of $800,000. The inventory cost Shohei Ltd $400,000 to produce. At 30 June 2021, 30% of the inventory is still on hand with Ohtani Ltd. The tax rate is 30% Record the consolidation entries for 30 June 2021
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XXX Corporation acquired an 80% interest in YYY Corporation on January 1, 2020, for $120,000 cash when YYY had Capital Stock of $60,000 and Retained Earnings of $60,000. The fair value/book value difference was attributable to equipment with a 10-year (straight-line) expected useful life. YYY suffered a $30,000 net loss in 2020 and paid $ 10,000 dividends. XXX's separate income for 2020 was $250,000. Required: (1) Compute the total controlling share of net income (2) Compute the noncontrolling share of net income (SHOW YOUR COMPUTATIONS)
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No. 32
L2-4 Awe Company pays CU500,000,000 for a 30% interest in Groy Company on July 1, 19x2 when the book value of Groy Company's net assets equals fair value. Awe Company amortizes any goodwill from this investment over 20 years. Information related to Groy Company is as follows: 31 Desember 19x1 31 Desember 19x2 Share capital, nominal IDR 1,000 Rp600.000.000 Rp600.000.000 Retained earning 400.000.000 500.000.000 Total Shareholders' Equity 1.000.000.000 1.100.000.000 Net profit earned during the year 19x2 200.000.000 Dividend for the year 19x2 (paid on March 1 of Rp. 50,000,000 and September 1 of Rp. 50,000,000) 100.000.000 Required: calculate Awe Company's revenue from Groy Company for the year 19x2
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