For the year ended December 31, the following results were given: Dividend Paid Net Income Parent Company P15,000 P30,200 Subsidiary Company 4,000 9,400 Using the proportionate basis or partial goodwill method, compute the non-controlling interest on December 31. A. P 0 C. P 610 B. P 540 D. P 940 Note: Just use the information provided to arrive at the answer.
For the year ended December 31, the following results were given: Dividend Paid Net Income Parent Company P15,000 P30,200 Subsidiary Company 4,000 9,400 Using the proportionate basis or partial goodwill method, compute the non-controlling interest on December 31. A. P 0 C. P 610 B. P 540 D. P 940 Note: Just use the information provided to arrive at the answer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
For the year ended December 31, the following results were given:
Dividend Paid Net Income
Parent Company P15,000 P30,200
Subsidiary Company 4,000 9,400
Using the proportionate basis or partial
A. P 0 C. P 610
B. P 540 D. P 940
Note: Just use the information provided to arrive at the answer.
Transcribed Image Text:On January 1, Parent Company acquired 90% of Subsidiary Company in exchange for 5,400 shares of P10 par
common stock having a market value of P120,600. Parent and Subsidiary condensed balance sheet on January 1,
were as follows:
Transcribed Image Text:Parent
Subsidiary
Company
P 37,400
Assets
Company
P 36,900
34,200
Cash
Accounts receivable, net
9,100
Inventories
22,900
Equipment, net
Patents
16,100
40,000
10.000
179,000
P 267,000
P112,600
Total Assets
Liabilities and Equities
Accounts Payable
Bonds Payable
Common stock, P10 par
Share Premium
P 4,000
P6,600
100,000
100,000
15,000
48 000
P 267,000
50,000
15,000
Retainedeamings
Total Liabilities and Equities
41,000
P112,600
At the date of acquisition, all assets and liabilities of Subsidiary Company have book value approximately equal to
their respective market values except the following asdetemined by appraisalas follows:
P 17,100
Inventories (FIFO method)
Equipment (net-remaining life 4 years)
Patents (rema ining life 10 years)
48,000
13,000
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