STI Co. acquired 55% of the outstanding shares of UE Inc on August 1, 2021 at a total cost of P5,005,000. At acquisition date, UE's ordinary shares and retained earnings amounted to P200,000 and P4,800,000. All assets and liabilities fair values equal to their book values except for the patent which had a fair value of P1,800,000 and a book value of P400,000. The patents have a remaining life of 5 years. For 2021, UE had the following earnings and dividends: Net Income Jan - July = 500,000 Aug - Dec = 1,100,000 Dividends Paid Jan - July = 1,100,000 Aug - Dec = 1,200,000 %3D

STI Co. acquired 55% of the outstanding shares of UE Inc on August 1, 2021 at a total cost of P5,005,000. At acquisition date, UE's ordinary shares and retained earnings amounted to P200,000 and P4,800,000. All assets and liabilities fair values equal to their book values except for the patent which had a fair value of P1,800,000 and a book value of P400,000. The patents have a remaining life of 5 years. For 2021, UE had the following earnings and dividends: Net Income Jan - July = 500,000 Aug - Dec = 1,100,000 Dividends Paid Jan - July = 1,100,000 Aug - Dec = 1,200,000 %3D

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

STI Co. acquired 55% of the outstanding shares of UE Inc on August 1, 2021 at a total cost of
P5,005,000. At acquisition date, UE's ordinary shares and retained earnings amounted to P200,000 and
P4,800,000. All assets and liabilities fair values equal to their book values except for the patent which
had a fair value of P1,800,000 and a book value of P400,000. The patents have a remaining life of 5
years. For 2021, UE had the following earnings and dividends:
Net Income
Jan - July = 500,000
Aug - Dec = 1,100,000
Dividends Paid
Jan - July = 1,100,000
Aug - Dec = 1,200,000
What is the net income attributable to the noncontrolling interest?

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