Superman has a 70% interest in the outstanding shares of Batman. On January 1, 2019, Batman sold to Superman a machinery for P360,000. The machinery was acquired by Batman four years ago at P500,000, estimated life of 10 years. In 2019, Superman and Batman reported net income of P500,000 (cost method) and P200,000, respectively. Dividends declared and paid by Batman in 2019 amounted to P50,000. Q: How much is the non-controlling interest in net income of Batman in 2019? a. 43,800 b. 60,000 c. 45,000 d. 135,000

Superman has a 70% interest in the outstanding shares of Batman. On January 1, 2019, Batman sold to Superman a machinery for P360,000. The machinery was acquired by Batman four years ago at P500,000, estimated life of 10 years. In 2019, Superman and Batman reported net income of P500,000 (cost method) and P200,000, respectively. Dividends declared and paid by Batman in 2019 amounted to P50,000. Q: How much is the non-controlling interest in net income of Batman in 2019? a. 43,800 b. 60,000 c. 45,000 d. 135,000

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

Superman has a 70% interest in the outstanding shares of Batman. On
January 1, 2019, Batman sold to Superman a machinery for P360,000.
The machinery was acquired by Batman four years ago at P500,000,
estimated life of 10 years. In 2019, Superman and Batman reported net
income of P500,000 (cost method) and P200,000, respectively. Dividends
declared and paid by Batman in 2019 amounted to P50,000.
Q: How much is the non-controlling interest in net income of Batman in
2019?
a. 43,800
b. 60,000
c. 45,000
d. 135,000

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