Compute the consilidated net income of Company A. Company A has a subsidiary, which is accounted for in its separate financial statements using the cost method. At the endof 2016, Company A reports net income of P200,000 in its separate financial statements.Share in net income of subsidiary40,000Cash dividends paid by subsidiary and received by Company A35,000Increase in fair value of investment120,000Assuming it has no other subsidiaries and other transactions affecting the net income at a consolidated level,compute the net income of Company A at a consolidate level given the following additional information.

Consolidated net income refers to the combined income of the parent company and its share in the net…

Answered: AJE ary and received by Company A ment…

AJE ary and received by Company A ment and other transactions affecting the net income : A at a consolidate level given the following addit

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter14: Intercorporate Investments In Common Stock

Section: Chapter Questions

Problem 20E

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Archie Co. has a subsidiary, which is accounted for in its separate financial statements using the cost method. At the end of 2016, the company reports net income of $20,000 in its separate financial statements. Increase in fair value of investment $12,000 Share in net income of subsidiary $4,000 Cash dividends paid by subsidiary and received by the company $3,500 Assuming it has no other subsidiaries and other transactions affecting the net income at a consolidated level, compute the net income of the company at a consolidate level.
Artichoke Co. has a subsidiary, which is accounted for in its separate financial statements using the cost method. At the end of 2032, the company reports net income of $200,000 in its separate financial statements. Cash dividends paid by subsidiary and received by the company $35,000 Increase in fair value of investment $120,000 Share in net income of subsidiary $40,000 Assuming it has no other subsidiaries and other transactions affecting the net income at a consolidated level, compute the net income of the company at a consolidate level.
Company A has a subsidiary, which is accounted for in its separate financial statements using the cost method. At the end of 2016, Company A reports net income of P200,000 in its separate financial statements. 8. Assuming it has no other subsidiaries and other transactions affecting the net income at a consolidated level, compute the net income of Company A at a consolidate level given the following additional information:
The consolidated income statement of P Corp. and its 80% subsidiary follows: P. Corp and Subsidiary Consolidated Income Statement For the year ended December 31, 2013 Sales P402,000 Cost of Goods Sold 246,000 Gross Profit 156,000 Operating expenses 81,000 Consolidated net income 75,000 Non-controlling interest in net income 6,000 Share of P. Corp. in the consolidated net income P69,000 How much of the consolidated net income was the result of the operation of the subsidiary? A. P51,000 B. P24,000 C. P7,500 D. P30,000
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Parent and its 80% owned Subsidiary report the following at December 31 of the current year: Parent Net Income, P100,000; Parent Dividends, P20,000, Parent Land, P500,000. Subsidiary Net Income, P80,000; Subsidiary Dividends, P10,000; Subsidiary Land, P300,000. On June 1, of the current year, Subsidiary sold land to Parent reporting a gain on sale of P10,000. The gain is included in the net income reported by the Subsidiary. 1. Determine the equity holders of parent’s net income and the non-controlling interest net income. 2. Determine the non-controlling interest net income.
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