Chicken Company acquired an 80% interest in Afritada Company on January 1, 20x4, for P270,000 cash when Afritada Company had common stock of P150,000 and retained earnings of P150,000. All excess was attributable to plant assets with a 10-year life. Afritada Company net income in 20x4 was P30,000 and paid no dividends. Chicken Company’s separate income in 20x4 was P375,000. Controlling interest in consolidated net income for 20x4 is: P405,000. P399,000. P396,000. P375,000.
Chicken Company acquired an 80% interest in Afritada Company on January 1, 20x4, for P270,000 cash when Afritada Company had common stock of P150,000 and retained earnings of P150,000. All excess was attributable to plant assets with a 10-year life. Afritada Company net income in 20x4 was P30,000 and paid no dividends. Chicken Company’s separate income in 20x4 was P375,000. Controlling interest in consolidated net income for 20x4 is: P405,000. P399,000. P396,000. P375,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Chicken Company acquired an 80% interest in Afritada Company on January 1, 20x4, for P270,000 cash when Afritada Company had common stock of P150,000 and retained earnings of P150,000. All excess was attributable to plant assets with a 10-year life. Afritada Company net income in 20x4 was P30,000 and paid no dividends. Chicken Company’s separate income in 20x4 was P375,000. Controlling interest in consolidated net income for 20x4 is:
P405,000.
P399,000.
P396,000.
P375,000.
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