FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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how much is the non-controlling interest in net assets as of December 31, 2022?
Transcribed Image Text:On January 1, 2022, P Company purchased 64,000 shares of the 80,000
outstanding shares of S Company at a price of P1,200,000, with an
excess of P30,000 over the book value of S Company's net assets.
P13,000 of the excess is attributed to an undervalued equipment with a
remaining useful life of eight years from the date of acquisition and the
rest of the amount is attributed fo goodwill. For the year 2022, P
Company reported a net income of P750,000 and paid dividends of
P180,000, while S Company reported a net income of P240,000 and paid
dividends to P Company amounting to P39,000. The retained earnings of
P Company at the end of 2022 per books is P1,025,000. P Company uses
the cost method to account for its investment in S Company and elected
to measure non-controlling interest at fair value on date of acquisition.
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