Compute for the profit attributable to equity holders of parent or controlling interest in net income. On January 3, 2021, ABC acquired 60% of the outstanding shares of JKL an excess of cost over bookvalue of P3,000,000. This excess was allocated to property, plant and equipment with 10 years ofestimated useful life which half was already use. For the year ended December 31, 2022, JKL preparedthe following condensed financial statements:Statement of Financial PositionCurrent AssetsPlantP2,250,000 LiabilitiesP1,000,000Property,and12,500,000 Share Capital8,500,000Equipment, netAccumulated Profits5,250,000P14,750,000TotalP14,750,000 Total图Statement of Accumulated ProfitsAccumulate Profits, BegP5,000,000SalesP2,500,000(1,250,000)(750,000)P500,000Cost of Goods SoldOperating ExpensesNet Income(250,000)P5,250,000DividendsAccumulated Profits, EndJKL regularly sells merchandise to ABC at a price of 120% of cost. In 2021 and 2022, sales from JKL toABC are as follows: Sales-2021 for P2,100,000 (inventory sold by ABC 1,800,000); Sales -2022P1,200,000 (inventory unsold by ABC P750,000). On December 31, 2022 compute for the non-controllinginterest in Net assets. Compute for the Profit attributable to Equity Holders of Parent or ControllingInterest in Net Income.

Answered: Compute for the profit attributable to…

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Accounting

Compute for the profit attributable to equity holders of parent or controlling interest in net income.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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Question

Compute for the profit attributable to equity holders of parent or controlling interest in net income.

On January 3, 2021, ABC acquired 60% of the outstanding shares of JKL an excess of cost over book
value of P3,000,000. This excess was allocated to property, plant and equipment with 10 years of
estimated useful life which half was already use. For the year ended December 31, 2022, JKL prepared
the following condensed financial statements:
Statement of Financial Position
Current Assets
Plant
P2,250,000 Liabilities
P1,000,000
Property,
and
12,500,000 Share Capital
8,500,000
Equipment, net
Accumulated Profits
5,250,000
P14,750,000
Total
P14,750,000 Total
图
Statement of Accumulated Profits
Accumulate Profits, Beg
P5,000,000
Sales
P2,500,000
(1,250,000)
(750,000)
P500,000
Cost of Goods Sold
Operating Expenses
Net Income
(250,000)
P5,250,000
Dividends
Accumulated Profits, End
JKL regularly sells merchandise to ABC at a price of 120% of cost. In 2021 and 2022, sales from JKL to
ABC are as follows: Sales-2021 for P2,100,000 (inventory sold by ABC 1,800,000); Sales -2022
P1,200,000 (inventory unsold by ABC P750,000). On December 31, 2022 compute for the non-controlling
interest in Net assets. Compute for the Profit attributable to Equity Holders of Parent or Controlling
Interest in Net Income.

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