ABC owns 90% interest of DEF Co. The following information are provided:АВС Со.DEF Co.Sales1,000,0002,700,000Cost of Sales(400,000)(1,350,000)Gross ProfitOperating Expense600,0001,350,000(250,000)20,00001,120,000(400,000)Dividend IncomeNet Income200,000ABC sold goods to DEF for P30,000, 20% of these goods were sold for the year. DEF also sold goods toABC for P50,000, 20% of these goods were unsold at the end of the year. The ending inventory for ABCand DEF are P120,000 and 50,000 respectively. Compute for the Non-controlling interest in Net Income.

Calculation of non controlling interest :

ABC owns 90% interest of DEF Co. The following information are provided: АВС Со. 2,700,000 (1,350,000) DEF Co. Sales 1,000,000 Cost of Sales (400,000) Gross Profit 600,000 (400,000) 1,350,000 (250,000) Operating Expense Dividend Income 20,0000 Net Income 200,000 1,120,000 ABC sold goods to DEF for P30,000, 20% of these goods were sold for the year. DEF also sold goods to ABC for P50,000, 20% of these goods were unsold at the end of the year. The ending inventory for ABC and DEF are P120,000 and 50,000 respectively. Compute for the Non-controlling interest in Net Income.

ABC owns 90% interest of DEF Co. The following information are provided: АВС Со. 2,700,000 (1,350,000) DEF Co. Sales 1,000,000 Cost of Sales (400,000) Gross Profit 600,000 (400,000) 1,350,000 (250,000) Operating Expense Dividend Income 20,0000 Net Income 200,000 1,120,000 ABC sold goods to DEF for P30,000, 20% of these goods were sold for the year. DEF also sold goods to ABC for P50,000, 20% of these goods were unsold at the end of the year. The ending inventory for ABC and DEF are P120,000 and 50,000 respectively. Compute for the Non-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 11MCQ

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