How much is the non controlling interest in the net assets of the subsidiary on december 31,2021 On January 1, 2021, Bass Co. issued equity instruments in exchange for 75% interest in Guitar Co. On acquisition date,Bass Co. elected to measure non-controlling interest at fair value. Bass Co.'s management believes that the fair value ofthe consideration transferred correlates to the fair value of the controlling interest acquired and that the fair value ofthe controlling interest is proportionate to the fair value of the remaining interest.Guitar Co.'s net identifiable assets have carrying amount and fair value of P300,000 and P360,000, respectively. Thedifference is attributable to a building with a remaining useful life of 6 years.The December 31, 2021 statements of financial position of Bass Co. and Guitar Co. are summarized below:Bass Co.Guitar Co.ASSETSInvestment in subsidiary (at cost)Other assetsTOTAL ASSETS300,0001,372,0001,672,000496,000496,000LIABILITIES AND EQUITYTrade and other payablesShare capitalRetained earningsTotal equityTOTAL LIABILITIES AND EQUITY292,000940,000440,0001,380,0001,672,000120,000200,000176,000376,000496,000No dividends were declared by either entity during year. There were also no inter-company transactions and impairmentin goodwill. How much is the non-controlling interest in the net assets of the subsidiary on December 31, 2021?

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much is the non controlling interest in the net assets of the subsidiary on december 31,2021

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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