On January 1, 20x2, ABC Co. sells 60% out of its 80% interest in XYZ, Inc. for
Question:
On January 1, 20x2, ABC Co. sells 60% out of its 80% interest in XYZ, Inc. for ₱100,000. ABC's remaining 20% interest in XYZ has a fair value of ₱25,000. This gives ABC significant influence over XYZ. The statements of financial position immediately before the sale are shown below:
Statements of financial position As at January 1, 20x2
ABC Co. XYZ, Inc. Consolidated
ASSETS
Cash 23,000 57,000 80,000
Accounts receivable 75,000 22,000 97,000
Inventory 105,000 15,000 120,000
Investment in subsidiary75,000 - -
Equipment 200,000 50,000 260,000
Accumulated depreciation (60,000) (20,000) (84,000)
Goodwill - - 3,000
TOTAL ASSETS 418,000 124,000 476,000
LIABILITIES AND EQUITY
Accounts payable 43,000 30,000 73,000
Bonds payable 30,000 - 30,000
Total liabilities 73,000 30,000 103,000
Share capital 170,000 50,000 170,000
Share premium 65,000 - 65,000
Retained earnings 110,000 44,000 118,000
Non-controlling interest - - 20,000
Total equity 345,000 94,000 373,000
TOTAL LIAB. & EQTY. 418,000 124,000 476,000
How much is the gain (loss) on the disposal?______________________________
