What is the profit attributable to equity holders of parent/controlling interest in Consolidated Net income for 2014?What is the Non-controlling interest in net income for 2014? Pepper Company acquired 80% of the voting stock of Salt Company on January 1, 2001, whenSalt Company's retained earnings amounted to 130,000. The difference between the implied andbook value and fair values of the non-cash assets on the date of acquisition was allocated asfollows:P50, 00020, 00040, 000LandEquipment (10-year life)Goodwill• Salt Company reported retained earnings of P 260, 000 on January 1, 2014, and 320,000on December 31, 2014.• Salt Company reported net income of P90,000 and declared dividends of P30,000 in2014.• Pepper reported operating income in 2014 in the amount of P700,000 with dividends paidof P25,000 and retained earnings on December 31, 2014, of P3,500,000.The sales, cost of sales and intercompany sales made during 2014 are as follows:Реpper Co.P 2,500,0001,250,000Salt Co.Sales1,200,000875,000Cost of SalesIntercompany sales:Pepper to SaltSalt to Pepper320, 000290, 000There were no intercompany sales prior to 2013 and unrealized profits on January 1 and onDecember 31, 2014, resulting from intercompany sales are summarized below:Unrealized IntercompanyProfit onResulting from:Sales by Salt Company to Pepper CompanySales by Pepper Company to Salt CompanyJan. 01, 2014P 10,00015,000Dec. 31, 2014P 5,00020,000

Computation of Group Net Income Particulars Pepper Co. Salt Co. Consolidated Net Income…

Answered: What is the profit attributable to…

What is the profit attributable to equity holders of parent/controlling interest in Consolidated Net income for 2014? What is the Non-controlling interest in net income for 2014?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which of the following statements is correct? Earnings and profits are exactly the same as…

A: Amount paid to the shareholders by the company from the profits earned is called dividends. Out of…

Q: For what reasons might a company restrict a portion of its retained earnings?

Q: How is the income determined for each shareholder under

A: If any shareholder terminates the shareholder interest in the corporation during taxable year

Q: Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Use the information below for 2018 for 3M Company to answer the requirements (5 millions) 2018 2017…

A: Return on equity and Return on Assets are the profitability ratios which indicate the efficiency of…

Q: Why might the after-tax internal rate of return on equity (ATIRRe) differ for a new investor versus…

A: A post-tax IRR for equity could shift for another financial specialist versus a current speculator…

Q: Why is the after tax cost of debt rather than the before tax cost used to calculate the weighted…

A: Weighted average cost of capital : WACC or Weighted average cost of capital, as the name suggests,…

Q: porate earnings and profits (E&P) is correct?

A: E&P refers to the accumulated earnings and profits of a company. The E&P of a company…

Q: Under the equity method, the investor

A: Investment shows the amount provided in a project or securities with the expectation of something in…

Q: What is book value per share and how does the corporation compute for the book value for each class…

A: Shares can be categorized mainly in two class one is equity or ordinary shares and other one is…

Q: What are if any the differences between Stockholder's Equity, Retained Earnings, Common Stock,…

A: Owner’s equity is the difference between total assets and total liabilities. Owner’s equity is…

Q: How do business owners determine their taxable income from their business ventures? How does this…

A: The given answer for the above mentioned question is given in the following steps for your…

Q: If profits are eventually issued as dividends, IAET-subject profits are liable to income tax. False…

A: Tax is a charge which is charged on the taxable income and the dividend tax is the charge which is…

Q: The following is from the 2021 annual report of Kaufman Chemicals, Inc.: Statements of Comprehensive…

A: The total comprehensive income is made up of net income and other comprehensive revenue. The total…

Q: As a minimum, the face of the income statement shall include line items that present the following…

A: The format of income statement is not prescribed, but some items need to be presented on the face of…

Q: hat is the noncontrolling interest in Subsidiary income? Select one: a. The portion of Subsidiary…

A: The shareholders holding more than 50% stake in the company become the holding company.

Q: When an individual owns directly stocks of the company, he has: Group of answer choices a. Direct…

A: Direct financial interest refers to a situation where an individual or entity has a financial stake…

Q: 2. What is the interpretation of the effective dividend taxrate?

A: The effective dividend tax rate is different from the dividend tax rate because the corporation's…

Q: Which is not generally accepted in presenting the income statement?

A: Prior period errors are accounting errors that occur in a company's financial statements in one…

Q: What is Adams’s

A: Net income is the amount of money left over after all costs, including payroll, the cost of goods or…

Q: 7 How should deferred taxes be presented on the balance sheet? As current components of…

A: Deferred tax arises whenever there is a difference between the carrying amount of the…

Q: Which of the following statements is correct? Multiple Choice Earnings and profits are…

A: The objective of the question is to identify the correct statement among the given options related…

Q: When are distributions to shareholders in an s corporation taxable and non taxable?

A: S corporation is one of the popular business entity for people looking for new businesses. The…

Q: Does the payment of the highest bidder for a delinquent share have any effect on total shareholder's…

A: Delinquent Share: It means any and all shares of capital stock owned by the transferee in excess of…

Q: Does the shareholders share of the corporations annual income increase the shareholders stock basis.

A: When a part of corporation's annual income is shared with the shareholders, it is known as cash…

Q: What is your firm’s tax expense in its latest financial statements?

A: The tax expenses in the financial statement of the company refers to the amount of taxes paid by the…

Q: Which of the folowing would be considered an Other Comprehensive income item Ganon dholof dcartinued…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: What are the accounting items corresponding to additions to wealth for shareholders, lenders and the…

A: The objective of the question is to identify the accounting items that correspond to the increase in…

Q: Under the equity method, the investor must debit the Equity Investments account when a dividend is…

A: Equity method is used by the investor company when the percentage of investment in the common stock…

Q: Paid-in-capital What types of paid-in-capital are there and what is the diffference in each…

A: Capital:Capital is the amount invested in the business. Capital increases by the amount of profits…

Q: 4. Consolidated retained earnings at December 31, 2019 5. Consolidated net income for 2019 6.…

A: Pub Corporation's retained earnings at December 31, 2019$2,670,000Sub Corporation's retained…

Q: explain the difference between the net income and net income available for common shareholders.

A: Introduction:- i)Net income means as follows under:- Net income means deduction of all expenses…

Q: What does shareholder’s equity includes? Explain them.

A: Shareholder’s equity: The claims of owner's on a company’s resources after the liabilities are paid…

Q: Why there is a difference among the company tax rate times with the firm’s accounting income?…

A: In accrual accounting, an expense that arises from the recognition of a liability must be measured…

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

What is the profit attributable to equity holders of parent/controlling interest in Consolidated Net income for 2014?

What is the Non-controlling interest in net income for 2014?

Pepper Company acquired 80% of the voting stock of Salt Company on January 1, 2001, when
Salt Company's retained earnings amounted to 130,000. The difference between the implied and
book value and fair values of the non-cash assets on the date of acquisition was allocated as
follows:
P50, 000
20, 000
40, 000
Land
Equipment (10-year life)
Goodwill
• Salt Company reported retained earnings of P 260, 000 on January 1, 2014, and 320,000
on December 31, 2014.
• Salt Company reported net income of P90,000 and declared dividends of P30,000 in
2014.
• Pepper reported operating income in 2014 in the amount of P700,000 with dividends paid
of P25,000 and retained earnings on December 31, 2014, of P3,500,000.
The sales, cost of sales and intercompany sales made during 2014 are as follows:
Реpper Co.
P 2,500,000
1,250,000
Salt Co.
Sales
1,200,000
875,000
Cost of Sales
Intercompany sales:
Pepper to Salt
Salt to Pepper
320, 000
290, 000
There were no intercompany sales prior to 2013 and unrealized profits on January 1 and on
December 31, 2014, resulting from intercompany sales are summarized below:
Unrealized Intercompany
Profit on
Resulting from:
Sales by Salt Company to Pepper Company
Sales by Pepper Company to Salt Company
Jan. 01, 2014
P 10,000
15,000
Dec. 31, 2014
P 5,000
20,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

19. Which of the following statements are true? a. Qualified dividends are part of the total ordinary dividends. b. Qualified dividends qualify for lower, long- term capital gains tax rates. c. Qualified dividends are reported on Form 1099-DIV. d. All of the above.
IFRS allows some flexibility regarding the classification of interest, dividends, and taxes. Explain fully what this flexibility entails. How have these items basically been classified in the SCF for this company?
How are profits and losses allocated to LLC members?
How can we determine the corporate taxable income?
Why is the after-tax cost of debt, rather than its before-taxrequired rate of return, used to calculate the weighted average costof capital?
In finding group retained earnings which of the following items we do not consider ? Parenr retained earnings Subsidiary share of retained earningsat post acquisition Parent share of subsidiary post acquisition profit Parent shareof impairment
The term to describe taxable income before the qualified business income deduction and less dividends and capital gains: Qualified business income Modified taxable income Qualified trade or business Specified service business
Compute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to answer the requirements. ($ millions) Sales Net income, consolidated Net income attributable to 3M shareholders Pretax interest expense Assets Total equity Equity attributable to 3M shareholders Net income consolidated S a. Compute return on equity (ROE) from the perspective of a 3M shareholder. Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE Numerator Denominator E Net income consolidated (adjusted) 2018 2017 $32,765 5,363 5,349 S 207 36,500 $37,987 9,848 11,622 9,796 11,563 S + Average total equity 5,349 $ b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. (Perform these computations from a consolidated perspective). Profit Margin (PM) Note: 1. Select the appropriate numerator and denominator used to…
What are dividends in arrears? How do they affect the allocation of dividends to preference and ordinary shareholder if: Preference share capital are noncumulative Preference share capital are cumulative
Which of the following items retain their character when they are passed through to shareholders of an S corporation? Wages paid Accelerated depreciation Net long-term capital gains Advertising expense All of the above retain their character when passed through
What are the categories of shareholder's equity?
How would a business manage its tax environment for sustainable growth in 2021 following the impact of COVID 19?