How much is the non- controlling interest in net assets on December 31, 2016?

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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Galaxy corporation acquired 80% of the outstanding shares of united company
on June 1, 2016 for P3,517,500. United Company's stockholder's equity components at the end
of this year as follows: Ordinary shares, P100 par, P1,500,000, Share premium P675,000 and
Retained earnings P1, 335,000. Noncontrolling interest is measured at fair value and the fair
value is P705,000. The Assets of United were fairly valued, except for inventories, which are
overstated by P66,000, and equipment, which was understated by P90,000. Remaining useful life
of equipment is 4 year. Stockholder's equity of Galaxy on January 1, 2016 is composed of
Ordinary shares P4,500,000, Share premium P1,050,000, Retained earnings P3,150,000.
Goodwill, if any, should be written down by P85,350 at year-end. Net income for the first year of
parent is P450,000 and the net income of subsidiary from the date of acquisition is P255,000.
Dividends declared at the end of the year amounted to P100,000 and P80,000. During the year,
there was no issuance of new ordinary shares.
 
1.
How much is the non- controlling interest in net assets on December 31, 2016?
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