YSL Corporation, SME, acquired 80% of the outstanding ordinary shares of GBX Company on June 1, 2019 for P586,250. GBX Company's shareholder's equity components at the end of this year were as follows: Ordinary shares, P100 par, P250,000; Share premium, P112,500 and Retained earnings, P222,500. All the assets of GBX were fairly valued, except for inventories, which is overstated by P11,000 and equipment, which is understated by P15,000. Remaining useful life of equipment is 4 years. Shareholder's equity of YSL on January 1, 2019 is composed of Ordinary shares, P750,000; Share premium, P175,000 and Retained earnings, P525,000. Net income for the first year of parent and subsidiary are P75,000 and P42,500 (from date of acquisition), respectively. Dividends declared at the end of the year amounted to P20,000 and P15,000, respectively. There was no issuance of new shares during the year. 1. What is the amount of non-controlling interest in net assets of GBX Company as of 12/31/2019? 2. What is the amount of consolidated equity at the end of the year?

YSL Corporation, SME, acquired 80% of the outstanding ordinary shares of GBX Company on June 1, 2019 for P586,250. GBX Company's shareholder's equity components at the end of this year were as follows: Ordinary shares, P100 par, P250,000; Share premium, P112,500 and Retained earnings, P222,500. All the assets of GBX were fairly valued, except for inventories, which is overstated by P11,000 and equipment, which is understated by P15,000. Remaining useful life of equipment is 4 years. Shareholder's equity of YSL on January 1, 2019 is composed of Ordinary shares, P750,000; Share premium, P175,000 and Retained earnings, P525,000. Net income for the first year of parent and subsidiary are P75,000 and P42,500 (from date of acquisition), respectively. Dividends declared at the end of the year amounted to P20,000 and P15,000, respectively. There was no issuance of new shares during the year. 1. What is the amount of non-controlling interest in net assets of GBX Company as of 12/31/2019? 2. What is the amount of consolidated equity at the end of the year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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.

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PROBLEM V.
YSL Corporation, SME, acquired 80% of the outstanding ordinary shares of GBX Company on June 1, 2019 for P586,250.
GBX Company's shareholder's equity components at the end of this year were as follows: Ordinary shares, P100 par,
P250,000; Share premium, P112,500 and Retained earnings, P222,500.
All the assets of GBX were fairly valued, except for inventories, which is overstated by P11,000 and equipment, which is
understated by P15,000. Remaining useful life of equipment is 4 years.
Shareholder's equity of YSL on January 1, 2019 is composed of Ordinary shares, P750,000; Share premium, P175,000 and
Retained earnings, P525,000.
Net income for the first year of parent and subsidiary are P75,000 and P42,500 (from date of acquisition), respectively.
Dividends declared at the end of the year amounted to P20,000 and P15,000, respectively. There was no issuance of new
shares during the year.
1. What is the amount of non-controlling interest in net assets of GBX Company as of 12/31/2019?
2. What is the amount of consolidated equity at the end of the year?

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