On January 1, 2020, PT Silver acquired 80% ownership in PT Galih at a price of IDR 300,000. As of January 1, 2020, the total shareholder equity of PT Galih is IDR 375,000. The book value of PT Galih's assets and liabilities is fair value. On January 2, 2020, PT Galih acquired 10% ownership in PT Silver at a price of IDR 50,000. At that time, total shareholder equity was Rp. 500,000. The fair value of PT Silver's assets and liabilities is their book value.
The following is data for the period ended 31 December 2020:
Dividend Net Income
PT Silver IDR 40,000 IDR 0
PT Galih IDR 10,000 IDR 0
The recording of mutual stock holdings between PT Silver and PT Galih uses the treasury stock method. The separate net income above does not take into account investment income.
a. Determine PT Galih's investment income from PT Silver in 2020
b. Determine the investment income of PT Silver from PT Galih in 2020
c. Determine the consolidated profit for PT Galih's non-controlling interest (non-controlling interest share) in 2020
d. Prepare an elimination journal for PT Galih's investment in PT Silver

Answer rating: 100% (QA)

a Investment Income of PT Galih Dividend declared by PT Silver Share of P... View the full answer