On January 1, 2018, Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary's Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 2018 is P210,000. The following are taken from the books of Parent and Subsidiary for 2018. Parent Subsidiary Sales 2,000,000 1,500,000 550,000 200,000 350,000 150,000 50,000 4,000,000 Gross Profit Net Income Dividend Declared (to be paid on Jan 15, 2019) 100,000 5,000,000 Total Assets From the data above, determine: Non-controlling Interest as of December 31, 2018.

On January 1, 2018, Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary's Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 2018 is P210,000. The following are taken from the books of Parent and Subsidiary for 2018. Parent Subsidiary Sales 2,000,000 1,500,000 550,000 200,000 350,000 150,000 50,000 4,000,000 Gross Profit Net Income Dividend Declared (to be paid on Jan 15, 2019) 100,000 5,000,000 Total Assets From the data above, determine: Non-controlling Interest as of December 31, 2018.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 22PC

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