Accountancy Company acquired 75% of the outstanding shares of Finance Company for P900,000. The book value of Finance Company's net assets is P1,000,000. Upon re-measurement of the acquiree's net assets, it shows that inventory is overstated by P40,000 and equipment held for 3 years has a fair value and book value of P420,000 and P360,000, respectively. The original cost of the equipment is P576,000 with no residual value. The NCI was measured at its fair value of P275,000. During the year, Accountancy reported net income from the separate operations of P350,000 and received P42,000 dividend from Finance Company. The net income of the Finance Company is reported at P135,000. Goodwill impairment attributable to the controlling interest is P13,500.

1. Compute the consolidated net income attributable to the parent.

2. Determine the balance of Non-controlling Interest - Net Assets Subsidiary (NCINAS) 

Answer rating: 100% (QA)

Solution Consolidated net income attributable to the parent NET INCOME OF PARENT 350000 DI... View the full answer