Parent Company purchased 60% of Subsidiary company on January 2, 2022 for P3,930,000 when Subsidiary’s book value was P6,300,000. On that day, the market value of the net assets of Subsidiary equaled their book values with the following exceptions: Book Value Market Value Remaining Life Buildings P1,850,000 P1,600,000 20 years Equipment 300,000 500,000 10 years Subsidiary Company reported the following for 2022 and 2023: Net income (loss) Dividends 2022 P750,000 P100,000 2023 150,000 50,000 1. How much is the net income attributable to non-controlling interest in 2023? 2. Using the fair value method, how much is the non-controlling interest as at December 31, 2023?
Parent Company purchased 60% of Subsidiary company on January 2, 2022 for P3,930,000 when
Book Value Market Value Remaining Life
Buildings P1,850,000 P1,600,000 20 years
Equipment 300,000 500,000 10 years
Subsidiary Company reported the following for 2022 and 2023:
Net income (loss) Dividends
2022 P750,000 P100,000
2023 150,000 50,000
1. How much is the net income attributable to non-controlling interest in 2023?
2. Using the fair value method, how much is the non-controlling interest as at December 31, 2023?
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