a.
Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company.Dividend is the part of profit of the company which company distributes it to its shareholders such as equity shareholders and preference shareholders. It is the expense of company and is eliminated from the
The percent of dividends paid by S company to be shown in consolidated financial statements.
b.
Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company.Dividend is the part of profit of the company which company distributes it to its shareholders such as equity shareholders and preference shareholders. It is the expense of company and is eliminated from the retained earnings of the company.
The percent of dividends paid by P company to be shown in consolidated retained earnings.
Want to see the full answer?
Check out a sample textbook solutionChapter 9 Solutions
ADV.FIN.ACCT. CONNECT+PROCTORIO PLUS
- Kk.25.arrow_forwardCase 3: Non-Controlling Interest measured at proportionate share in net assetsInahan Co. elects the option to measure the non-controlling interest at the non-controlling interest’s proportionate share of Bunso, Inc.’s net identifiable assets. Inahan paid P 1,500,000.00 cash and P 750,000.00 land with fair value of P 1,000,000.00 as consideration for the 75% interest in Bunso, Inc. 1.How much is the transaction costs incurred during the business combination?a. 65,000.00b. 125,000.00c. 190,000.00d. 250,000.00 2.How much is the Consideration Transferred by Inahan for its interest in Bunso?a. 750,000.00b. 2,250,000.00c. 2,500,000.00d. 3,250,000.00 3.How much is the Non-Controlling Interest in the acquiree?a. 0.00b. 600,000.00c. 652,500.00d. 833,333.33arrow_forward17. Pab Corporation decided to establish Sollon Company as a wholly owned subsidiary by transferring some of its existing assets and liabilities to the new entity. In exchange, Sollon issued Pab 31,000 shares of $7 par value common stock. The following information is provided on the assets and accounts payable transferred: Cost Book Value Fair Value Cash $ 25,000 $ 25,000 $ 25,000 Inventory 78,000 78,000 78,000 Land 63,000 63,000 93,000 Buildings 180,000 132,000 258,000 Equipment 92,000 76,000 124,000 Accounts Payable 61,000 61,000 61,000 Required: Prepare the journal entry that Pab recorded for the transfer of assets and accounts payable to Sollon Prepare the journal entry that Sollon recorded for the receipt of assets and accounts payable from Pab.arrow_forward
- Requirements: 7. What amount of non-controlling interest is to be presented in the consolidated statement offinancial position on December 31, 2x19?8. How much is the consolidated retained earnings attributable to Parent’s shareholder equity onDecember 31, 2x19?9. How much is the total consolidated assets on December 31, 2x19?arrow_forward1. How much is the fair value of the net assets of Sub? 2. How much is the goodwill/(gain from bargain purchase) at the date of acquisition? 3. How much is the total assets at the date of acquisition?arrow_forwardQUESTIONS: 1. What is the total non-controlling interest in net income of subsidiary (NCINI5) on Dec 31, 20x5? 2. What is the amount of consolidated assets on Dec 31, 20x5?arrow_forward
- Determine which of following entities SHALL and SHALL NOT prepare consolidated financial statements in accordance with PFRS 10. Explain your answer. I. Entity LOL Ltd. that has an immaterial participation of 90% in equity interest of YIE Ltd. II. Entity V, an investment entity, acquired an investment in a subsidiary(entity Y). Entity Y provides services that is related to Entity V’s investmentactivities. III. Entity C Ltd. that has an interest of 20% in equity shares of ACV Ltd. IV. Entity B ABC Group presents consolidated financial statementswhich includes Entity B. Entity B is itself a parent because it has controlling interests in 8 other entities. Entity B does not have equity traded in a regulated market but is waiting for the approval of listing its debt in the Philippine Stock Exchange.arrow_forwarda. Determine the goodwill or gain on bargain purchase from the above acquisition if the NCI is to be valued on a proportionate b. Determine the balance of the NCI in FC’s consolidated financial statements.arrow_forwardDetermine the following asset balances that would appear in the consolidated financial statements of Portland and its 80% owned subsidiary:1) Current Assets2) Land3) Building and Equipment4) Goodwill5) Investment in Sidney Corporation6) Ordinary shares7) Retained earnings8) Minority interest9) Goodwill and minority interest assuming that Sydney’s shares are traded in the stock marketat P 20/share.arrow_forward
- H6.arrow_forward2. ABC Corporation holds ordinary shares of XYZ Inc. acquired as follows: Date of Acquisition Shares Total Cost September 19, Year 2 750 60,000 July 16, Year 1 1,250 110,000 The shares above were classified as equity investments at fair value through other comprehensive income. Fair values on December 31, Year 1 and Year 2 were P 85 and P 90 respectively. In Year 3, ABC Corp. Received 2,000 rights to purchase XYZ Inc. ordinary shares at P 80 per share. Five rights are required to purchase one share. ABC Corp. used rights to purchase additional 300 shares of XYZ Inc when each shares sells at P 100. Subsequently ABC sold the remaining rights at 4.50 each. At December 31, Year 3. XYZ Inc ordinary shares sell at P 98. Required:a) Determine the amount of the equity account Unrealized Gains or Losses on Equity Investments at Fair Value through Other Comprehensive Income at the end of the Years 1 and 2.b) Determine the amount taken to other comprehensive income as a result of the…arrow_forward17abarrow_forward