Compute for the NCI on June 30,2023On June 30, 2021, ABC Co. acquired 75,000 of DEF Co.'s 100,000 outstanding shares with par value per share of P1 for P4 per share.At this time, DEF's shares have a quoted price of P3.50 per share and DEF's retained earnings is P80,000.Additional information:• DEF's total assets include land classified as investment property at a cost of P180,000. The land's fair values are P200,000 onacquisition date and P320,000 on June 30, 2023. DEF uses the cost model for its investment properties. However, the groupuses the fair value model.• On acquisition date, DEF's building classified as property, plant, and equipment had a fair value of P30,000 in excess of itscarrying amount. The building's remaining useful life is 5 years. The group uses the straight-line method of depreciation.• The current accounts on June 30, 2023 include intercompany receivables and payables of P10,000.• An impairment test on June 30, 2023 concluded that goodwill is impaired by P20,000.• NCl is measured at fair value.• There are no subsequent changes in DEF's outstanding shares.The June 30, 2023 individual financial statements of the entities show the following information:ABC Co.DEF Co.Total assets1,000,000500,000Total liabilities200,000300,000120,000100,000Share capitalRetained earnings500,0001,000,000280,000Total liabilities and equity500,000

Shares:- A firm’s total capital is divided into small equal units, these each units is known as a…

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The June 30, 2023 individual financial statements of the entities show the following information:

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Question

Compute for the NCI on June 30,
2023
On June 30, 2021, ABC Co. acquired 75,000 of DEF Co.'s 100,000 outstanding shares with par value per share of P1 for P4 per share.
At this time, DEF's shares have a quoted price of P3.50 per share and DEF's retained earnings is P80,000.
Additional information:
• DEF's total assets include land classified as investment property at a cost of P180,000. The land's fair values are P200,000 on
acquisition date and P320,000 on June 30, 2023. DEF uses the cost model for its investment properties. However, the group
uses the fair value model.
• On acquisition date, DEF's building classified as property, plant, and equipment had a fair value of P30,000 in excess of its
carrying amount. The building's remaining useful life is 5 years. The group uses the straight-line method of depreciation.
• The current accounts on June 30, 2023 include intercompany receivables and payables of P10,000.
• An impairment test on June 30, 2023 concluded that goodwill is impaired by P20,000.
• NCl is measured at fair value.
• There are no subsequent changes in DEF's outstanding shares.
The June 30, 2023 individual financial statements of the entities show the following information:
ABC Co.
DEF Co.
Total assets
1,000,000
500,000
Total liabilities
200,000
300,000
120,000
100,000
Share capital
Retained earnings
500,000
1,000,000
280,000
Total liabilities and equity
500,000

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