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

Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

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.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8MC

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