Ice Co. owns 75% interest in Fire Co. On acquisition date, the carrying amount of Fire Co.’s net identifiable assets was P240,000, equal to the fair value. Non-controlling interest was measured using the proportionate share method. In 20x1, Fire Co. declared P100,000 dividends. Selected information on the entities on December 31, 20x1 is shown below:
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Ice Co. owns 75% interest in Fire Co. On acquisition date, the carrying amount of Fire Co.’s net identifiable assets was P240,000, equal to the fair value. Non-controlling interest was measured using the proportionate share method.
In 20x1, Fire Co. declared P100,000 dividends. Selected information on the entities on December 31, 20x1 is shown below:
Ice Co. Fire Co.
Statement of financial position accounts:
Share capital 800,000 200,000
Retained earnings 280,000 120,000
Total equity 1,080,000 320,000
Statement of
Revenues 640,000 260,000
Expenses (240,000) (128,000)
Dividend income 75,000 0 .
Profit or loss 475,000 132,000
Compute for the non-controlling interest in the net assets of the subsidiary as of year-end.
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