FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On January 2, 2022, Parent Company acquired 80% of Subsidiary Company’s ordinary shares for P700,000. The book value and fair value of the net assets were equal except for inventory which was overstated by P37,500 and equipment which was undervalued by P50,000. The equipment has a remaining useful life of ten years. Non-controlling interest is measured at fair value. On the date of acquisition,
During the year, Parent sold merchandise to Subsidiary costing P500,000 for P625,000. Only 75% was sold during the year. On December 31, 2022, Subsidiary Company reported net income of P131,250 and paid dividends of P45,000 to Parent. Parent reported earnings from its own operations of P356,250 and paid dividends of P172,500.
Subquestions:
a. How much is the Net Income Attributable to NCI?
b. How much is the Non-Controlling Interest at December 31, 2022?
.....
Transcribed Image Text:Share Capital
Retained Earnings
Parent
1,312,500
1,950,000
Subsidiary
300,000
525,000
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