Mama company acquired 75% of the outstanding shares of Finance Company for P900,000. Book value of Papa Company’s net assets is P1,000,000. Upon re-measurement of the acquiree’s net assets, it shows that inventory is overstated by P40,000 and an equipment held for 3 years has a fair value and book value of P420,000 and P360,000, respectively. The original cost of the equipment if P576,000 with no residual value. The NCI was measured at its fair value of P275,000. During the year, Mama reported net income from separate operation of P350,000 and received P42,000 dividend from Papa Company. The net income of Papa Company is reported at P135,000. Goodwill impairment attributable to the controlling interest is P13,500. Compute the consolidated net income attributable to the parent and Non-Controlling Interest – Net Assets Subsidiary
Mama company acquired 75% of the outstanding shares of Finance Company for P900,000. Book value of Papa Company’s net assets is P1,000,000. Upon re-measurement of the acquiree’s net assets, it shows that inventory is overstated by P40,000 and an equipment held for 3 years has a fair value and book value of P420,000 and P360,000, respectively. The original cost of the equipment if P576,000 with no residual value. The NCI was measured at its fair value of P275,000. During the year, Mama reported net income from separate operation of P350,000 and received P42,000 dividend from Papa Company. The net income of Papa Company is reported at P135,000.
Compute the consolidated net income attributable to the parent and Non-Controlling Interest – Net Assets Subsidiary
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