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value of Smith Company's net tangible assets was P2,000,000. The non-controlling trading conditions the goodwill arising on the acquisition of Smith Co. was determined to be impaired by 25% as of the reporting date, March 31, 2021. interest was measured at the proportionate share of acquiree's net assets. Due to poor a Jemuary 2, 2020, Galatians Company acquired 80% investment in Philippians Company. The acquisition cost was equal to Galatians equity in Philippians net assets on shat date. The retained earnings of Galatians and Philippians are P500,000 and P100.000 respectively. During 2020, Galatians had net income of P200,000, which included its couity in Philippians earnings, and declared dividends of P50,000; Philippians had net income of P40,000 and declared dividends of P20,000. On December 31, 2020, the consolidated retained earnings must be: a. P650,000 b. Р666,000 c. P770,000 d. P766,000 21. Patriotism Company purchased 70% of Strength Company on January 2, 2020 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 2020 income and dividends of P160,000 and P60,000, respectively and 2021 income and dividends of P210,000 and P80,000, respectively. The balance of non-controlling interest account on December 31, 2021 must be: a. Р223,200 b. P276,000 c. P169,200 d. P136,800 * Jenny Company acquired 80% of the equity share capital of Smith Company on October 2020. The consideration was P2.000.000 in cash and 400,000 equity shares of Jenny Volon that date, the market value of each Jenny Company's shares was P3 and the fair 20

value of Smith Company's net tangible assets was P2,000,000. The non-controlling trading conditions the goodwill arising on the acquisition of Smith Co. was determined to be impaired by 25% as of the reporting date, March 31, 2021. interest was measured at the proportionate share of acquiree's net assets. Due to poor a Jemuary 2, 2020, Galatians Company acquired 80% investment in Philippians Company. The acquisition cost was equal to Galatians equity in Philippians net assets on shat date. The retained earnings of Galatians and Philippians are P500,000 and P100.000 respectively. During 2020, Galatians had net income of P200,000, which included its couity in Philippians earnings, and declared dividends of P50,000; Philippians had net income of P40,000 and declared dividends of P20,000. On December 31, 2020, the consolidated retained earnings must be: a. P650,000 b. Р666,000 c. P770,000 d. P766,000 21. Patriotism Company purchased 70% of Strength Company on January 2, 2020 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 2020 income and dividends of P160,000 and P60,000, respectively and 2021 income and dividends of P210,000 and P80,000, respectively. The balance of non-controlling interest account on December 31, 2021 must be: a. Р223,200 b. P276,000 c. P169,200 d. P136,800 * Jenny Company acquired 80% of the equity share capital of Smith Company on October 2020. The consideration was P2.000.000 in cash and 400,000 equity shares of Jenny Volon that date, the market value of each Jenny Company's shares was P3 and the fair 20

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The amount of goodwill reported in Jenny Company's consolidated account as of March 23. Michael Company acquired 60% of Scott Company for P300,000 when Scott's book value value of P180,000. Also, at that date, Scott had a trademark (10-year life) that was undervalued by P60,000. Also, patented technology (5-year life) was undervalued by P40,000. Two years later, the following figures are reported by these two companies 31, 2021 is; а. Р300,000 b. P900,000 c. P1,200,000 d. P-0- was P400,000. The newly comprised 40% non-controlling interest had an assessed value of P180,000. Also, at that date, Scott had a trademark (10-year life) that undervalued by P60,000. Also, patented technology (5-year life) was P40,000. Two years later, the following figures are reported by these two companies (shareholders equity accounts have been omitted) Michael Scott Scott (@BV) 620,000 260,000 410,000 390,000 900,000 500,000 (@BV) 300,000 200,000 150,000 120,000 400,000 300,000 (@FV) 320,000 280,000 150,000 120,000 ba Current assets Trademarks s 000, 000 Patents Liabilities Revenues Expenses How much is the consolidated net income? a. P451,600 b. P486,000 с. Р500,000 d. P514,000 24. How much is the consolidated trademark? a. P460,000 b. P508,000 c. P540,000 d. P484,000 25. How much is the non-controlling interest in net income of subsidiary (NCINIS)? а. Р26,000 b. P28,800 c. P40,000 d. P34,400
Transcribed Image Text:The amount of goodwill reported in Jenny Company's consolidated account as of March 23. Michael Company acquired 60% of Scott Company for P300,000 when Scott's book value value of P180,000. Also, at that date, Scott had a trademark (10-year life) that was undervalued by P60,000. Also, patented technology (5-year life) was undervalued by P40,000. Two years later, the following figures are reported by these two companies 31, 2021 is; а. Р300,000 b. P900,000 c. P1,200,000 d. P-0- was P400,000. The newly comprised 40% non-controlling interest had an assessed value of P180,000. Also, at that date, Scott had a trademark (10-year life) that undervalued by P60,000. Also, patented technology (5-year life) was P40,000. Two years later, the following figures are reported by these two companies (shareholders equity accounts have been omitted) Michael Scott Scott (@BV) 620,000 260,000 410,000 390,000 900,000 500,000 (@BV) 300,000 200,000 150,000 120,000 400,000 300,000 (@FV) 320,000 280,000 150,000 120,000 ba Current assets Trademarks s 000, 000 Patents Liabilities Revenues Expenses How much is the consolidated net income? a. P451,600 b. P486,000 с. Р500,000 d. P514,000 24. How much is the consolidated trademark? a. P460,000 b. P508,000 c. P540,000 d. P484,000 25. How much is the non-controlling interest in net income of subsidiary (NCINIS)? а. Р26,000 b. P28,800 c. P40,000 d. P34,400
20. On January 2, 2020, Galatians Company acquired 80% investment in Philippians be impaired by 25% as of the reporting date, March 31, 2021. DATE OF ACQUISITION CHAPTER 3: CONSOLIDATION - SUBSEQUENT TO respectively. During 2020, Galatians had net income of P200,000, which included its interest was measured at the proportionate share of acquiree's net assets. Due to poor value of Smith Company's net tangible assets was P2,000,000. The non-controlling trading conditions the goodwill arising on the acquisition of Smith Co. was determined to Co. On that date, the market value of each Jenny Company's shares was P3 and the fair 22. Jenny Company acquired 80% of the equity share capital of Smith Company on October Page | 127 n Tenuary 2, 2020, Galatians Company acquired 80% investment in Philippians Company, The acquisition cost was equal to Galatians equity in Philippians net assets on het date. The retained earnings of Galatians and Philippians are P500,000 and P100,000. respectively. During 2020, Galatians had net income of P200,000, which included its cquity in Philippians earnings, and declared dividends of P50,000; Philippians had net income of P40,000 and declared dividends of P20,000. On December 31, 2020, the consolidated retained earnings must be: a. P650,000 b. P666,000 c. P770,000 d. P766,000 21. Patriotism Company purchased 70% of Strength Company on January 2, 2020 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 2020 income and dividends of P160,000 and P60,000, respectively and 2021 income and dividends of P210,000 and P80,000, respectively. The balance of non-controlling interest account on December 31, 2021 must be: a. P223,200 b. P276,000 c. P169,200 d. P136,800 * Tany Company acquired 80% of the equity share capital of Smith Company on October 20. The consideration was P2,000,000 in cash and 400,000 equity shares of Jenny Velon that date, the market value of each Jenny Company's shares was P3 and the fair 00.09
Transcribed Image Text:20. On January 2, 2020, Galatians Company acquired 80% investment in Philippians be impaired by 25% as of the reporting date, March 31, 2021. DATE OF ACQUISITION CHAPTER 3: CONSOLIDATION - SUBSEQUENT TO respectively. During 2020, Galatians had net income of P200,000, which included its interest was measured at the proportionate share of acquiree's net assets. Due to poor value of Smith Company's net tangible assets was P2,000,000. The non-controlling trading conditions the goodwill arising on the acquisition of Smith Co. was determined to Co. On that date, the market value of each Jenny Company's shares was P3 and the fair 22. Jenny Company acquired 80% of the equity share capital of Smith Company on October Page | 127 n Tenuary 2, 2020, Galatians Company acquired 80% investment in Philippians Company, The acquisition cost was equal to Galatians equity in Philippians net assets on het date. The retained earnings of Galatians and Philippians are P500,000 and P100,000. respectively. During 2020, Galatians had net income of P200,000, which included its cquity in Philippians earnings, and declared dividends of P50,000; Philippians had net income of P40,000 and declared dividends of P20,000. On December 31, 2020, the consolidated retained earnings must be: a. P650,000 b. P666,000 c. P770,000 d. P766,000 21. Patriotism Company purchased 70% of Strength Company on January 2, 2020 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 2020 income and dividends of P160,000 and P60,000, respectively and 2021 income and dividends of P210,000 and P80,000, respectively. The balance of non-controlling interest account on December 31, 2021 must be: a. P223,200 b. P276,000 c. P169,200 d. P136,800 * Tany Company acquired 80% of the equity share capital of Smith Company on October 20. The consideration was P2,000,000 in cash and 400,000 equity shares of Jenny Velon that date, the market value of each Jenny Company's shares was P3 and the fair 00.09
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