On January 4, 2022, Party Corporation purchase 80% of Summer Company's ordinary share for P810,000 worth...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 4, 2022, Party Corporation purchase 80% of Summer Company's ordinary share for P810,000 worth of its own shares of stocks currently selling at P60 per share. Fair value of Summer Co's assets and liabilities are equal to fair value except for undervalued depreciable asset for P140,00 with economic life of ten (10) years. Non-controlling interest is measured at fair value on date of acquisition. On the date of acquisition, shareholder's equity of two companies are as follows: Party Corporation Summer Company Ordinary Share P1,312,500 P300,000 Retained Earnings 1,950,000 525,000 On December 31, 2022, Summer Company reported net income of P181,250 and paid dividends of P30,000 to the non-controlling interest. Party reported net earnings of P375,500 and paid dividends of P122,500. Goodwill had been impaired and should be reported at P22,500 on December 31, 2022. (INPUT YOUR ANSWERS IN FIGURES. DO NOT PUT ANY COMMA, PESO SIGN, DECIMALS, AND EXTRA SPACES) 1. How much is the Non-Controlling Interest in Net Income of Subsidiary (NCINIS)? 2. How much is the consolidated shareholders' equity as of December 31, 2022? On January 4, 2022, Party Corporation purchase 80% of Summer Company's ordinary share for P810,000 worth of its own shares of stocks currently selling at P60 per share. Fair value of Summer Co's assets and liabilities are equal to fair value except for undervalued depreciable asset for P140,00 with economic life of ten (10) years. Non-controlling interest is measured at fair value on date of acquisition. On the date of acquisition, shareholder's equity of two companies are as follows: Party Corporation Summer Company Ordinary Share P1,312,500 P300,000 Retained Earnings 1,950,000 525,000 On December 31, 2022, Summer Company reported net income of P181,250 and paid dividends of P30,000 to the non-controlling interest. Party reported net earnings of P375,500 and paid dividends of P122,500. Goodwill had been impaired and should be reported at P22,500 on December 31, 2022. (INPUT YOUR ANSWERS IN FIGURES. DO NOT PUT ANY COMMA, PESO SIGN, DECIMALS, AND EXTRA SPACES) 1. How much is the Non-Controlling Interest in Net Income of Subsidiary (NCINIS)? 2. How much is the consolidated shareholders' equity as of December 31, 2022?
Expert Answer:
Answer rating: 100% (QA)
Answer Step1 iConsolidated shareholders equity refers ... 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
-
Sal Corporations recorded assets and liabilities are equal to their fair values on July 1, 2011, when Pub Corporation purchases 72,000 shares of Sal common stock for $1,800,000. Identifiable net...
-
Sal Corporation's recorded assets and liabilities are equal to their fair values on July 1, 2012, when Pub Corporation purchases 36,000 shares of Sal common stock for $900,000. Identifiable net...
-
Son Corporation's recorded assets and liabilities are equal to their fair values on July 1, 2017, when Pop Corporation purchases 36,000 shares of Son common stock for $900,000. Identifiable net...
-
The time it takes to get a cars oil changed at Speedy Lube is distributed normally with a mean of 12 min and a standard deviation of 2 min. Compute the probability that a customer will have her or...
-
The following schedule of capital assets was obtained from the records of the city of Elmcreek: City of Elmcreek Schedule of General Fixed Assets December 31, 2018 Governmental activities: Land. . ....
-
Assume the only computer in the residence uses PPP to communicate with the ISP. If the user sends 10 network-layer packets to ISP, how many frames are exchanged in each of the following cases: a....
-
The Wind Map The website hint.fm/wind/ shows the current wind patterns across the US. In order to generate this map, what two variables are being recorded at weather stations across the US?
-
Review the SEC's complaint against GE (see Note 1) and explain the specifics of the company are hedging transactions and why they violated GAAP.
-
P 3 4u k2 1 12 x2 b A simple representation of a vehicle suspension system is shown in Figure above. Assume that the forces produced by the springs and dampers act at the end points P and Q and that...
-
Who do you think is correct, Mark (the unload capacity should be twice as high) or Doug (the two lifts have the same capacity)? Can you give a response to Jessicais there any other difference between...
-
How can the effective implementation of Just-in-Time (JIT) and lean production principles contribute to improved operational efficiency, cost reduction, and customer satisfaction in a manufacturing...
-
Trace the simplified model of participant behavior for a consumer thinking about joining a health club. Briefly comment on each element of the model.
-
Find and describe a Web site for a health club. How does the information relate to the consumer decision- making process to join the club?
-
How do rational choice theorists explain addictive behaviour as a rational choice, and are their hypotheses explained by the econometric evidence? What are some of the problems with this econometric...
-
Find and describe two sports Web sites that specifically appeal to children. How does this information relate to the process of consumer socialization?
-
What are nifs and sophisciates and how do the ways they deal with present bias differ? Illustrate with some examples.
-
Zawetere Limited, in Siteki is a manufacturing company and is in the process of preparing its budget for the upcoming production period. The following data relate to the company for the year ended 30...
-
Use this circle graph to answer following Exercises. 1. What fraction of areas maintained by the National Park Service are designated as National Recreation Areas? 2. What fraction of areas...
-
A company's management believes that substantial doubt exists that the company can meet its financial obligations as they come due for a one-year period of time from the issuance of its financial...
-
What are some of the possible reasons for the numerous corporate accounting scandals discovered during 2001 and 2002?
-
On January 1, Patterson Corporation acquired 80 percent of the 100,000 outstanding voting shares of Soriano, Inc., in exchange for $31.25 per share cash. The remaining 20 percent of Sorianos shares...
-
Using what you learned in this chapter of Dessler Human Resource Management, build on the companys new system by recommending two more specific career development activities the hotel should...
-
Many hotel jobs are inherently dead end; for example, maids, laundry workers, and valets, either have no great aspirations to move up, or are just using these jobs temporarily, for instance, to help...
-
Should other employees (cleaner/spotters, counter people) be put on a similar plan? Why or why not? If so, how exactly?
Study smarter with the SolutionInn App