ABC Co. paid P150,000 for its 75% interest in DEF Co. ABC elected to value NCI at fair value. DEF's net identifiable assets approximated their fair values at acquisition date. The acquisition resulted in a goodwill attributable to NCI of P10,000. Since the acquisition date, DEF has made accumulated profits of P200,000. There have been no changes in DEF's share capital since acquisition date. The group determined that goodwill has been impaired by P8,000. A summary of the individual statements of financial positions of the entities as at the end of reporting period is shown below: ABC Co. DEF Co. Total assets 1,000,000 500,000 Total liabilities 200,000 300,000 120,000 Share capital Retained earnings 100,000 280,000 500,000 Total liabilities and equity 1,000,000 500,000 How much is the NCI in net assets?
ABC Co. paid P150,000 for its 75% interest in DEF Co. ABC elected to value NCI at fair value. DEF's net identifiable assets approximated their fair values at acquisition date. The acquisition resulted in a goodwill attributable to NCI of P10,000. Since the acquisition date, DEF has made accumulated profits of P200,000. There have been no changes in DEF's share capital since acquisition date. The group determined that goodwill has been impaired by P8,000. A summary of the individual statements of financial positions of the entities as at the end of reporting period is shown below: ABC Co. DEF Co. Total assets 1,000,000 500,000 Total liabilities 200,000 300,000 120,000 Share capital Retained earnings 100,000 280,000 500,000 Total liabilities and equity 1,000,000 500,000 How much is the NCI in net assets?
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 22PC
Related questions
Question
How much is the NCI in net assets?
Transcribed Image Text:ABC Co. paid P150,000 for its 75% interest in DEF Co. ABC elected to value NCI at fair value. DEF's net identifiable assets approximated
their fair values at acquisition date. The acquisition resulted in a goodwill attributable to NCI of P10,000.
Since the acquisition date, DEF has made accumulated profits of P200,000. There have been no changes in DEF's share capital since
acquisition date. The group determined that goodwill has been impaired by P8,000.
A summary of the individual statements of financial positions of the entities as at the end of reporting period is shown below:
АВС Со.
1,000,000
DEF Co.
Total assets
500,000
Total liabilities
200,000
120,000
Share capital
300,000
100,000
Retained earnings
500,000
280,000
Total liabilities and equity
1,000,000
500,000
How much is the NCl in net assets?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning