ADVANCED FIN. ACCT. LL W/ACCESS>CUSTOM<
12th Edition
ISBN: 9781265074623
Author: Christensen
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 7, Problem 7.12Q
To determine
Non-Controlling Interest
Non-Controlling Interest is also known minority interest. It is that ownership position in which shareholder owns less than 50% of outstanding shares and has no control over decision.
: Whether the income assign to non-controlling interest is more if sale occurs during Jan 1 to Dec 31.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
MEME Corporation’s Retained Earnings at December 31, 2021 amounted to P2,000,000. On that date, the corporation declared and distributed its investment property which was acquired at a historical cost P300,000 and has a fair market value of P450,000 on December 31, 2021. On the date of declaration and distribution, by what amount should Retained Earnings be charged?
MEME Corporation’s Retained Earnings at December 31, 2021 amounted to P2,000,000. On that date, the corporation declared and distributed its investment property which was acquired at a historical cost P300,000 and has a fair market value of P450,000 on December 31, 2021. On the date of declaration and distribution, by what amount should Retained Earnings be charged?
A. P300,000
B. P150,000
C. None
D. P450,000
P Ltd bought 80% of S Ltd’s equity shares on 1 January 2016. On the
date of the purchase of S Ltd's shares, among other things, S Ltd's
statement of financial position contains the following:
$
Retained profit
72,000
Tangible non-current assets
Cost
288,000
Fair value
360,000
On the date of acquisition (of S Ltd's shares) by P Ltd, S Ltd's assets
were not revalued to fair value.
It is part of S Ltd's accounting policy to depreciate non-current assets
on a straight-line basis for 10 years.
The income statements of P Ltd and S Ltd for the year ended 31
December 2020 are as follows:
P Ltd
S Ltd
$
$
Revenue
240,000
168,000
Cost of sales
144,000
24,000
Gross profit
96,000
144,000
Expenses
12,000
14,400
Depreciation and amortization
Operating profit
24,000
28,800
60,000
100,800
9,600
50,400
Income tax
2,400
Net profit
98,400
Reserves (brought forward)
Reserves (carried forward)
240,000
168,000
290,400 266,400
Note: P Ltd and S Ltd are considered to be in the same group for the purpose of…
Chapter 7 Solutions
ADVANCED FIN. ACCT. LL W/ACCESS>CUSTOM<
Ch. 7 - Prob. 7.1QCh. 7 - Prob. 7.2QCh. 7 - Prob. 7.3QCh. 7 - Prob. 7.4QCh. 7 - Prob. 7.5QCh. 7 - Prob. 7.6QCh. 7 - Prob. 7.7QCh. 7 - Prob. 7.8QCh. 7 - Prob. 7.9QCh. 7 - Prob. 7.10Q
Ch. 7 - Prob. 7.11QCh. 7 - Prob. 7.12QCh. 7 - Prob. 7.13QCh. 7 - Prob. 7.14QCh. 7 - Prob. 7.15QCh. 7 - Prob. 7.16QCh. 7 - Prob. 7.17QCh. 7 - Prob. 7.18AQCh. 7 - Prob. 7.1CCh. 7 - Prob. 7.2CCh. 7 - Prob. 7.3CCh. 7 - Prob. 7.4CCh. 7 - Prob. 7.5CCh. 7 - Prob. 7.1.1ECh. 7 - Prob. 7.1.2ECh. 7 - Prob. 7.1.3ECh. 7 - Prob. 7.1.4ECh. 7 - Prob. 7.1.5ECh. 7 - Prob. 7.2.1ECh. 7 - Prob. 7.2.2ECh. 7 - Prob. 7.2.3ECh. 7 - Prob. 7.2.4ECh. 7 - Prob. 7.2.5ECh. 7 - Prob. 7.2.6ECh. 7 - Prob. 7.3ECh. 7 - Prob. 7.4ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Transfer of Depreciable Asset at Year-End Pitcher...Ch. 7 - Prob. 7.9ECh. 7 - Sale of Equipment to Subsidiary in Current Period...Ch. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.17ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.20ECh. 7 - Prob. 7.21ECh. 7 - Prob. 7.22ECh. 7 - Prob. 7.23AECh. 7 - Prob. 7.24PCh. 7 - Prob. 7.25PCh. 7 - Prob. 7.26PCh. 7 - Prob. 7.27PCh. 7 - Prob. 7.28.1PCh. 7 - Prob. 7.28.2PCh. 7 - Prob. 7.28.3PCh. 7 - Prob. 7.28.4PCh. 7 - Prob. 7.29PCh. 7 - Prob. 7.30PCh. 7 - Prob. 7.31PCh. 7 - Prob. 7.32PCh. 7 - Prob. 7.33PCh. 7 - Prob. 7.34PCh. 7 - Prob. 7.35PCh. 7 - Prob. 7.37PCh. 7 - Prob. 7.38PCh. 7 - Prob. 7.41AP
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
- A non-current asset with a carrying amount of $2400 was sold by the parent to its subsidiary for $1000 on 1 January 2019. The subsidiary intended to use this item as inventory, being a seller of second-hand goods. Both entities charged depreciation at the rate of 25% p.a. on the diminishing balance on non-current assets. The item was still on hand at 30 June 2019. Assume an income tax rate of 30%. Prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019 Answer: Loss on sale Dr $ 1400 Your last answer was interpreted as follows: 1400 Inventory ÷ Cr Your last answer was interpreted as follows: 1400 Accumulated depreciation ÷ Dr $ 1400 ÷ $ 350 Your last answer was interpreted as follows: 350 Depreciation Expense ÷ Cr ÷ $ 350 Your last answer was interpreted as follows: 350arrow_forwardCorporation’s Retained Earnings at December 31, 2021 amounted to P2,000,000. On that date, the corporation declared and distributed its investment property which was acquired at a historical cost P300,000 and has a fair market value of P450,000 on December 31, 2021. On the date of declaration and distribution, by what amount should Retained Earnings be charged?arrow_forwardAt what amount should the revaluation surplus be reported on December 31, 2022 in the statement of changes in equity?arrow_forward
- 6. Tulip Company purchased the net assets of another entity for P2,000,000. On the sate of the transaction, the acquire had P800,000 of liabilities The assets of the acquiree at fair value were $1,900,000 for current assets and P1,600,000 for noncurrent assets. What is the amount of gain on bargain purchase? a. P 700,000 b. P-700,000 c. P 800,000 d. P-800,000arrow_forwardComprehensive Illustration (Estimated Time: 60 to 75 Minutes) On January 1, 2017, Father Company acquired an 80 percent interest in Sun Company for $425,000. The acquisition-date fair value of the 20 percent noncontrolling interest's ownership shares was $102,500. Also as of that date, Sun reported total stockholders' equity of $400,000: $100,000 in common stock and $300,000 in retained earnings. In setting the acquisition price, Father appraised four accounts at values different from the balances reported within Sun's financial records. Problem Buildings (8-year remaining life). Land.... Equipment (5-year remaining life).. Royalty agreement (20-year remaining life). Undervalued by $20,000 Undervalued by $50,000 Undervalued by $12,500 Not recorded, valued at $30,000 page 189 As of December 31, 2021, the trial balances of these two companies are as follows: Current assets Investment in Sun Company. Land... Buildings (net). Equipment (net). Expenses... Dividends declared. Total debits..…arrow_forwardPositivity Enterprises accounted for noncurrent assets using the revaluation model. On September 1, 2021, the entity classified as land held for sale. At that date, the carrying amount of the land was P4,000,000 and the balance in the revaluation surplus was P600,000. At the same date, the fair value of the land was estimated at P 4,100,000 and the cost of disposal at P100,000. On December 31, 2021, the fair value less cost of disposal of the land did not change. The land was sold on December 31, 2021 for P4,200,000. What is the amount of revaluation surplus on December 31, 2021?arrow_forward
- An entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amou before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The total expense to be recognized in profit or loss related to these assets isarrow_forwardUse the following to answer questions 8 through 10: On May 1, 2021, Jazzie Co. agreed to sell the assets of its Mister Division to Shawna Inc. for $80 million. The sale was completed on December 31, 2021. Jazzie’s year ends on December 31st. The following additional facts pertain to the transaction: The Mister Division qualifies as a component of an entity as defined by GAAP. Mister's net assets totaled $48 million on Jazzie's books at the time of the sale. Mister incurred a pre-tax operating loss of $10 million in 2021. Jazzie’s income tax rate is 40%. In the 2021 income statement for Jazzie Co., they would report after tax income from discontinued operations of: Group of answer choices $9.2 million. $13.2 million. $22 million. $26 million.arrow_forwardAbba Company accounted for noncurrent assets using the revakuation model. On June 30,2021, the entity classified a land as held for sale. At that date, the carrying amount was P2,900,000 and the balance of the revaluation surplus was P200,000. On December 31,2021, the fair value was estimated at P3,250,000 and the cost of disposal at P250,000. REQUIRED: 1. What is the adjusted carrying amount of the land on June 30,2021? a. 3,100,000 b. 3,300,000 c. 2,900,000 d. 2,700,000 2. What is the adjusted carrying amount of the land on December 31, 2021? a. 3,100,000 b.3,300,000 c. 3,000,000 d. 3,250,000arrow_forward
- Please explain how 820 000 derive.arrow_forwardAn entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amount before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The balance of revaluation surplus as of 30 June 2020 after classification of the assets as held for sale isarrow_forwardAn entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amount before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The total expense to be recognized in profit or loss related to these assets isarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning