2022, Lucas Company acquired 85% of outstanding shares of Luna Corp. The consideration transferred includes cash payment of P2,000,000 and issuance of 50,000 shares with a market price of P45 per share. The book value of Luna Corp.’s identifiable net assets approximate its fair value, except for the following: Merchandise inventory’s fair value is lower than the book balance by 150,000. Equipment-A, with 2 years remaining useful life, costing P300,000 is understated by P50,000. Land with a fair value of P500,000 is recognized in the books amounting to P350,000. The following events happened to Luna Corp. Equipment-A was sold in June 30, 2023 for P320,000.
On January 1, 2022, Lucas Company acquired 85% of outstanding shares of Luna Corp. The consideration transferred includes cash payment of P2,000,000 and issuance of 50,000 shares with a market price of P45 per share.
The book value of Luna Corp.’s identifiable net assets approximate its fair value, except for the following:
- Merchandise inventory’s fair value is lower than the book balance by 150,000.
- Equipment-A, with 2 years remaining useful life, costing P300,000 is understated by P50,000.
- Land with a fair value of P500,000 is recognized in the books amounting to P350,000.
The following events happened to Luna Corp.
- Equipment-A was sold in June 30, 2023 for P320,000.
- 60% of merchandise inventory were sold in
- There is no movement as to the ordinary shares of Luna Corp during the
The unadjusted
|
|
Lucas Company |
Luna Corp |
|
Cash |
2,240,000 |
1,800,000 |
|
Trade Receivables |
1,000,000 |
960,000 |
|
Merchandise Inventory |
2,320,000 |
740,000 |
|
Furniture, net |
820,000 |
540,000 |
|
Equipment, net |
1,540,000 |
660,000 |
|
Land |
880,000 |
3,000,000 |
|
Trademark, net |
60,000 |
240,000 |
|
Investment in Luna |
4,250,000 |
|
|
Cost of Good Sold |
5,500,000 |
3,840,000 |
|
Expenses |
3,240,000 |
1,620,000 |
|
Dividends Declared |
1,280,000 |
1,920,000 |
|
TOTAL |
23,130,000 |
15,320,000 |
|
Liabilities |
1,570,000 |
1,700,000 |
|
Ordinary shares |
3,600,000 |
2,700,000 |
|
|
5,200,000 |
1,860,000 |
|
Sales |
10,730,000 |
7,940,000 |
|
Gain on sale of furniture |
50,000 |
120,000 |
|
Dividend Income |
1,980,000 |
1,000,000 |
|
TOTAL |
23,130,000 |
15,320,000 |
How much is the consolidated net income attributable to parent in December 31, 2022?
- 5,397,000
- 5,428,875
- 5,418,250
- 5,386,375
How much is the consolidated net income attributable to non-controlling interest In December 31, 2022?
- 531,000
- 536,625
- 529,125
- 534,750
How much is the consolidated shareholder’s equity as of December 31, 2022?
- 12,938,250
- 13,935,000
- 10,335,000
- 15,215,000
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