On January 1, 20x1, Pine Corp acquired 75% interest in Sine Inc. for P2,400,000. On that...

 

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On January 1, 20x1, Pine Corp acquired 75% interest in Sine Inc. for P2,400,000. On that date Sine Ordinary share and Retained earnings were P2,000,000 and P1,000,000. The non-controlling interest on the date of acquisition was P800,000. The assets and liabilities of Sine's book values approximates their fair values except for the inventories and equipment which were undervalued by P30,000 and P50,000, respectively. The equipment has a remaining estimated life of five years. On October 1, 20x1, Sine Inc. sold equipment to Pine Corp. costing P300,000 with accumulated depreciation of P120,000 for P200,000. The remaining useful life of equipment was 4 years. In year 20x1, the goodwill is impaired by P5,000. On April 30, 20x2, Pine Corp. sold equipment to Sine Inc, costing P500,000 with accumulated depreciation P100,000 for P300,000. The remaining estimated life of equipment was five years. The following information were extracted from the separate financial statements of Pine and Sine for 20x1 and 20x2: Pine Sine Net Income Dividend Net Income Dividend 20x1 800,000 600,000 350,000 150,000 20x2 1,000,000 750,000 500,000 350,000 What is the amount of non-controlling interest in net income for 20x2? On January 1, 20x1, Pine Corp acquired 75% interest in Sine Inc. for P2,400,000. On that date Sine Ordinary share and Retained earnings were P2,000,000 and P1,000,000. The non-controlling interest on the date of acquisition was P800,000. The assets and liabilities of Sine's book values approximates their fair values except for the inventories and equipment which were undervalued by P30,000 and P50,000, respectively. The equipment has a remaining estimated life of five years. On October 1, 20x1, Sine Inc. sold equipment to Pine Corp. costing P300,000 with accumulated depreciation of P120,000 for P200,000. The remaining useful life of equipment was 4 years. In year 20x1, the goodwill is impaired by P5,000. On April 30, 20x2, Pine Corp. sold equipment to Sine Inc, costing P500,000 with accumulated depreciation P100,000 for P300,000. The remaining estimated life of equipment was five years. The following information were extracted from the separate financial statements of Pine and Sine for 20x1 and 20x2: Pine Sine Net Income Dividend Net Income Dividend 20x1 800,000 600,000 350,000 150,000 20x2 1,000,000 750,000 500,000 350,000 What is the amount of non-controlling interest in net income for 20x2?

Answer rating: 100% (QA)

Reported net income of Sine 350000 AAP amortization 40000 Gain on sale of equipment in Oct ... View the full answer