SUBSEQUENT TO DATE OF ACQUISITIONCHAPTER 3: CONSOLIDATION-21. Patriotism Company purchased 70% of Strength Company onJanuary 2, 2022 for P420,000. At that date Strength had inventoryand plant assets with market values greater than book values in theamount of P50,000 and P90,000, respectively. The inventory andplant assets were assigned to have a remaining life of six months andfive years, respectively. Strength Company has 2022 income anddividends of P160,000 and P60,000, respectively and 2023 incomeand dividends of P210,000 and P80,000, respectively.The balance of non-controlling interest account on December 31.180,000NU beg (420K 787. x30%.)2023 must be:a. P223,200b. P276,000P169,200с.d. P136,80022. Jenny Company acquired 80% of the equity share capital of Smith

NCI = Purchase Consideration × 30%/70% = P420000 × 30%/70% = P180000

Answered: The balance of non-controlling interest…

Business

Accounting

The balance of non-controlling interest account on December 31. 2023 must be: N, beg (420% 767. Xxav'1.)

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

100%

SUBSEQUENT TO DATE OF ACQUISITION
CHAPTER 3: CONSOLIDATION-
21. Patriotism Company purchased 70% of Strength Company on
January 2, 2022 for P420,000. At that date Strength had inventory
and plant assets with market values greater than book values in the
amount of P50,000 and P90,000, respectively. The inventory and
plant assets were assigned to have a remaining life of six months and
five years, respectively. Strength Company has 2022 income and
dividends of P160,000 and P60,000, respectively and 2023 income
and dividends of P210,000 and P80,000, respectively.
The balance of non-controlling interest account on December 31.
180,000
NU beg (420K 787. x30%.)
2023 must be:
a. P223,200
b. P276,000
P169,200
с.
d. P136,800
22. Jenny Company acquired 80% of the equity share capital of Smith

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Step 1 Calculation of NCI on date of acquisition:

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Step 2 Calculation of retained earning as on 2022 and 2023:

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Step 3 Calculation of NCI Share in 2022 and 2023:

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Step 4 Calculation of non controlling Interest as on 31st Dec 2023:

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