On January 1, 2016, Blue Company purchased 80% of the shares of Green Corp at book...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2016, Blue Company purchased 80% of the shares of Green Corp at book value, which is the same as its fair value at the date of acquisition. The shareholders' equity of Green Corporation on this date showed: Ordinary share Capital - P1,140,000 and Accumulated profits - P980,000. On April 30, 2016, Green Corp acquired a used machinery for P168,000 from Blue Company that was being carried in the latter's books at P210,000. The asset still has a remaining useful life of 5 years. On the other hand, On August 31, 2015, Blue Company purchased land from Green for P690,000. The original cost of this land was P550,000. Furthermore, there was an upstream sales of P112,000 in 2015 and P168,000 in 2016. The buying affiliate reported inventory on December 31, 2015 amounting to P70,000 of which 20% comes from the selling affiliate and inventory on December 31, 2016 amounting to P84,000 of which 30% comes from the selling affiliate. Blue Company uses a 30% mark-up on cost and Green Corp uses a 25% mark-up on cost from their selling prices. Net income of Blue Company and Green Corp for 2016 amounted to P720,000 and P310,000. Dividends paid totaled to P230,000 and P105,000 for Blue Company and Green Corp., respectively. How much is the non-controlling interest in net assets at December 31, 2016? On January 1, 2016, Blue Company purchased 80% of the shares of Green Corp at book value, which is the same as its fair value at the date of acquisition. The shareholders' equity of Green Corporation on this date showed: Ordinary share Capital - P1,140,000 and Accumulated profits - P980,000. On April 30, 2016, Green Corp acquired a used machinery for P168,000 from Blue Company that was being carried in the latter's books at P210,000. The asset still has a remaining useful life of 5 years. On the other hand, On August 31, 2015, Blue Company purchased land from Green for P690,000. The original cost of this land was P550,000. Furthermore, there was an upstream sales of P112,000 in 2015 and P168,000 in 2016. The buying affiliate reported inventory on December 31, 2015 amounting to P70,000 of which 20% comes from the selling affiliate and inventory on December 31, 2016 amounting to P84,000 of which 30% comes from the selling affiliate. Blue Company uses a 30% mark-up on cost and Green Corp uses a 25% mark-up on cost from their selling prices. Net income of Blue Company and Green Corp for 2016 amounted to P720,000 and P310,000. Dividends paid totaled to P230,000 and P105,000 for Blue Company and Green Corp., respectively. How much is the non-controlling interest in net assets at December 31, 2016?
Expert Answer:
Answer rating: 100% (QA)
To calculate the noncontrolling interest in net assets at December 31 2016 we need to consider the relevant transactions and adjustments during the ye... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
Posted Date:
Students also viewed these accounting questions
-
Problem 2: A Co. acquired 60% of the outstanding ordinary shares of B Co. on January 1, 2014. A Co. acquired it at book value which is the same as its fair value at the date of acquisition. Income...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
On 1 January 2020, P Ltd acquired 90% of ownership of S Ltd. Fair value of non-controlling interests at the date of acquisition was $600,000. The financial statements of P Lid and S Ltd for the year...
-
A solid homogeneous disk 900 mm in diameter with a mass of 140 kg is rolled up 20 incline by a force of 1000 N, applied parallel to the plane. Assuming no slipping. determine the speed of the disk...
-
For many individuals, the nature of work and jobs is changing. Describe these changes, some reasons for them, and how they are affecting both HR management and individuals.
-
Thirty companies comprise the DJIA. Just how big are these companies? One common method for measuring the size of a company is to use its market capitalization, which is computed by multiplying the...
-
An electronic instrument, of mass \(20 \mathrm{~kg}\), is to be isolated to achieve a natural frequency of \(15 \mathrm{rad} / \mathrm{s}\) and a damping ratio of 0.95. The available dashpots can...
-
The accounts receivable clerk for Quigley Industries prepared the following partially completed aging of receivables schedule as of the end of business on November 30: The following accounts were...
-
Refer to the cost data, Picture below. Take off the square feet of wall forms and cubic yards of ready mix concrete for the walls of the elevator pit. Determine the total material and labor cost for...
-
The TimpRiders LP has operated a motorcycle dealership for a number of years. Amir is the limited partner, Francesca is the general partner, and they share capital and profits equally. Francesca...
-
Explore the impact of horizontal gene transfer on bacterial evolution. What are the mechanisms by which horizontal gene transfer occurs, and how does it contribute to antibiotic resistance ?
-
Let us explore whether there is any way to distinguish acceleration due to rotation from acceleration due to a gravitational force. Imagine a deep bowl with a small volume of milk in it. (a) What...
-
Chang Industries purchased a piece of equipment on January 1, 2025. The equipment cost HK\($600,000\) and has an estimated life of 8 years and a residual value of HK\($80,000.\) What was the...
-
Determine the magnitude of the momentum of a muon in a reference frame in which the muon moves with speed \(0.500 c_{0}\). The mass of a muon is 207 times the mass of an electron.
-
What is the magnitude of the gravitational force between two \(1.0 \mathrm{~g}\) marbles placed \(100 \mathrm{~mm}\) apart?
-
According to an observer at rest in the Earth reference frame, ship A travels in one direction at speed \(0.862 c_{0}\) while ship B moves in the opposite direction at \(0.717 c_{0}\). Ship A sends...
-
Panasonic Industries Bhd recently decided to adopt a Just-in-Time inventory policy to control the rising cost of production and to free up cash for investment. Upon implementation of JIT, the company...
-
According to a recent survey, 40% of millennials (those born in the 1980s or 1990s) view themselves more as spenders than savers. The survey also reveals that 75% of millennials view social...
-
Several years ago, Bennett, Inc., bought a portion of the outstanding bonds of Smith Corporation, a subsidiary organization. The acquisition was made from an outside party. In the current year, how...
-
The law firm of Hackney and Walton has decided to start supporting a worthy charity. The partners want to select an organization that makes good use of its resources to meet its stated mission. Go to...
-
A purchase order for $3,000 is recorded in the general fund for the purchase of a new computer. The computer is received at an actual cost of $3,020. Which of the following statements is correct? a....
-
With reference to Exercise 10.42, verify that the mean of the observed distribution is 1.6 , corresponding to \(40 \%\) of the cars requiring repairs. Then look up the probabilities for \(n=5\) and...
-
The following is the distribution of the hourly number of trucks arriving at a company's warehouse: Find the mean of this distribution, and using it (rounded to one decimal place) as the parameter...
-
Among 100 purification filters used in an experiment, 46 had a service life of less than 20 hours, 19 had a service life of 20 or more but less than 40 hours, 17 had a service life of 40 or more but...
Study smarter with the SolutionInn App