How much is the non- controlling interest in net assets on December 31, 2016?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Galaxy corporation acquired 80% of the outstanding shares of united company
on June 1, 2016 for P3,517,500. United Company's stockholder's equity components at the end
of this year as follows: Ordinary shares, P100 par, P1,500,000, Share premium P675,000 and
value is P705,000. The Assets of United were fairly valued, except for inventories, which are
overstated by P66,000, and equipment, which was understated by P90,000. Remaining useful life
of equipment is 4 year. Stockholder's equity of Galaxy on January 1, 2016 is composed of
Ordinary shares P4,500,000, Share premium P1,050,000, Retained earnings P3,150,000.
parent is P450,000 and the net income of subsidiary from the date of acquisition is P255,000.
Dividends declared at the end of the year amounted to P100,000 and P80,000. During the year,
there was no issuance of new ordinary shares.
1.
How much is the non- controlling interest in net assets on December 31, 2016?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education