14. On January 2, 2022, Perfect Corporation purchase 80% of SeldomCompany's ordinary shares for P3,240,000. P150,000 of the totalexcess is attributable to goodwill and the balance to a depreciableasset with an economic life of 10 years. NCI is measured at its fairvalue on the date of acquisition.On the date of acquisition, shareholder's equity of the two companiesfollows:PerfectSeldomOrdinary shareAccumulated Profits (losses)P 5,250,000P 1,200,0007,800,0002,100,000On December 31, 2022, Seldom Company reported net income ofP525,000 and paid dividends of P225,000 to its shareholders. PerfectCo. reported net income of P1,605,000 and paid dividends ofP690,000. Goodwill had been impaired and should be reduced byP120,000 for the current year.On December 31, 2022, what is the consolidated net income?a. P1,770,000b. P1,788,750c. P1,800,000d. P1,893,750

Seldom 4. On January 2, 2022, Perfect Corporation purchase 80% of Company's ordinary shares for P3,240,000. P150,000 of the total excess is attributable to goodwill and the balance to a depreciable asset with an economic life of 10 years. NCI is measured at its fair value on the date of acquisition.

Seldom 4. On January 2, 2022, Perfect Corporation purchase 80% of Company's ordinary shares for P3,240,000. P150,000 of the total excess is attributable to goodwill and the balance to a depreciable asset with an economic life of 10 years. NCI is measured at its fair value on the date of acquisition.

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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Question

14. On January 2, 2022, Perfect Corporation purchase 80% of Seldom
Company's ordinary shares for P3,240,000. P150,000 of the total
excess is attributable to goodwill and the balance to a depreciable
asset with an economic life of 10 years. NCI is measured at its fair
value on the date of acquisition.
On the date of acquisition, shareholder's equity of the two companies
follows:
Perfect
Seldom
Ordinary share
Accumulated Profits (losses)
P 5,250,000P 1,200,000
7,800,000
2,100,000
On December 31, 2022, Seldom Company reported net income of
P525,000 and paid dividends of P225,000 to its shareholders. Perfect
Co. reported net income of P1,605,000 and paid dividends of
P690,000. Goodwill had been impaired and should be reduced by
P120,000 for the current year.
On December 31, 2022, what is the consolidated net income?
a. P1,770,000
b. P1,788,750
c. P1,800,000
d. P1,893,750

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