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interest in Net assets. Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income.

interest in Net assets. Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income.

Cornerstones of Financial Accounting
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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ABC owns 90% interest of DEF Co. The following information are provided: АВС Со. 2,700,000 (1,350,000) 1,350,000 (250,000) DEF Co. Sales 1,000,000 Cost of Sales Gross Profit Operating Expense (400,000) 600,000 (400,000) 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.
Transcribed Image Text:ABC owns 90% interest of DEF Co. The following information are provided: АВС Со. 2,700,000 (1,350,000) 1,350,000 (250,000) DEF Co. Sales 1,000,000 Cost of Sales Gross Profit Operating Expense (400,000) 600,000 (400,000) 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.
On January 3, 2021, ABC acquired 60% of the outstanding shares of JKL an excess of cost over book value of P3,000,000. This excess was allocated to property, plant and equipment with 10 years of estimated useful life which half was already use. For the year ended December 31, 2022, JKL prepared the following condensed financial statements: Statement of Financial Position Current Assets Property, P2,250,000 Liabilities P1,000,000 Plant and 12,500,000 Share Capital 8,500,000 Equipment, net Accumulated Profits 5,250,000 P14,750,000 Total P14,750,000 Total 图 Statement of Accumulated Profits Accumulate Profits, Beg P5,000,000 Sales P2,500,000 Cost of Goods Sold (1,250,000) (750,000) Operating Expenses Net Income P500,000 (250,000) P5,250,000 Dividends Accumulated Profits, End JKL regularly sells merchandise to ABC at a price of 120% of cost. In 2021 and 2022, sales from JKL to ABC are as follows: Sales-2021 for P2,100,000 (inventory sold by ABC 1,800,000) ; Sales -2022 P1,200,000 (inventory unsold by ABC P750,000). On December 31, 2022 compute for the non-controlling interest in Net assets. Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income.
Transcribed Image Text:On January 3, 2021, ABC acquired 60% of the outstanding shares of JKL an excess of cost over book value of P3,000,000. This excess was allocated to property, plant and equipment with 10 years of estimated useful life which half was already use. For the year ended December 31, 2022, JKL prepared the following condensed financial statements: Statement of Financial Position Current Assets Property, P2,250,000 Liabilities P1,000,000 Plant and 12,500,000 Share Capital 8,500,000 Equipment, net Accumulated Profits 5,250,000 P14,750,000 Total P14,750,000 Total 图 Statement of Accumulated Profits Accumulate Profits, Beg P5,000,000 Sales P2,500,000 Cost of Goods Sold (1,250,000) (750,000) Operating Expenses Net Income P500,000 (250,000) P5,250,000 Dividends Accumulated Profits, End JKL regularly sells merchandise to ABC at a price of 120% of cost. In 2021 and 2022, sales from JKL to ABC are as follows: Sales-2021 for P2,100,000 (inventory sold by ABC 1,800,000) ; Sales -2022 P1,200,000 (inventory unsold by ABC P750,000). On December 31, 2022 compute for the non-controlling interest in Net assets. Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income.
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