On January 1, 2014, Pilar Company acquired 60% interest in Santos Company for P2,400,000 cash. The stockholder’s equity of Santos at the time of acquisition is P3,400,000. Non-controlling interest is measured at its fair value. The excess of cost over the book value of interest acquired is allocated to the following assets: Inventories – P100,000 (sold in 2014) and Building – P200,000 (5-year remaining life). During 2014, Santos Company reported net income of P800,000 and paid dividends of P100,000. What is the non-controlling interest in net assets of subsidiary on December 31, 2014? A. P1,824,000 B. P1,864,000 C. P1,704,000 D. P1,744,000
On January 1, 2014, Pilar Company acquired 60% interest in Santos Company for P2,400,000 cash. The stockholder’s equity of Santos at the time of acquisition is P3,400,000. Non-controlling interest is measured at its fair value. The excess of cost over the book value of interest acquired is allocated to the following assets: Inventories – P100,000 (sold in 2014) and Building – P200,000 (5-year remaining life). During 2014, Santos Company reported net income of P800,000 and paid dividends of P100,000. What is the non-controlling interest in net assets of subsidiary on December 31, 2014? A. P1,824,000 B. P1,864,000 C. P1,704,000 D. P1,744,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2014, Pilar Company acquired 60% interest in Santos Company for P2,400,000 cash. The
Non-controlling interest is measured at its fair value. The excess of cost over the book value of interest acquired is allocated to the following assets: Inventories – P100,000 (sold in 2014) and Building – P200,000 (5-year remaining life). During 2014, Santos Company reported net income of P800,000 and paid dividends of P100,000.
What is the non-controlling interest in net assets of subsidiary on December 31, 2014?
A. P1,824,000
B. P1,864,000
C. P1,704,000
D. P1,744,000
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