Compute for the reported net income of GHI Company from its own operation, if the net income of ABC from its own operation for 2024 amounted to P157,500. Do not forget if there is any upstream and downstream. ABC Corp owns 60% of the outstanding shares of GHI Company, which it purchased forP42,000 above underlying book value of P604,800 on December 31, 2021. For the year 2024,GHI included in its net income P75,600 of unrealized gain on a year-end sale of depreciableassets to ABC. The non-controlling interest of GHI was computed for P10,080 of income in the2024 consolidated financial statements. The purchase difference allocated to building whichis amortized over 20 years.

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Compute for the reported net income of GHI Company from its own operation, if the net income of ABC from its own operation for 2024 amounted to P157,500.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 19E

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Question

Compute for the reported net income of GHI Company from its own operation, if the net income of ABC from its own operation for 2024 amounted to P157,500. Do not forget if there is any upstream and downstream.

ABC Corp owns 60% of the outstanding shares of GHI Company, which it purchased for
P42,000 above underlying book value of P604,800 on December 31, 2021. For the year 2024,
GHI included in its net income P75,600 of unrealized gain on a year-end sale of depreciable
assets to ABC. The non-controlling interest of GHI was computed for P10,080 of income in the
2024 consolidated financial statements. The purchase difference allocated to building which
is amortized over 20 years.

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