On January 1, 2020, P Corp. purchased 80% of S Co.'s P10 par ordinary shares for 1. P986,000. On this date, the carry ing amount of S's net assets was P1,000,000. The fair values of S Co.'s identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net), which were P120,000 in excess of the carrying amount. The estimated remaining life of the asset is 5 years. For the year ended December 31, 2020, S had net income of P290,000 and paid cash dividends totaling P125,000. Loss on impairment of goodwill in 2020 amounted to P20,000. P Corp. uses the proportionate method in measuring non-controlling interest. Determine the non-controlling interest in net income on December 31, 2020. P53,200 b. P58,000 c. P49,200 d. P24,200 a.

On January 1, 2020, P Corp. purchased 80% of S Co.'s P10 par ordinary shares for 1. P986,000. On this date, the carry ing amount of S's net assets was P1,000,000. The fair values of S Co.'s identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net), which were P120,000 in excess of the carrying amount. The estimated remaining life of the asset is 5 years. For the year ended December 31, 2020, S had net income of P290,000 and paid cash dividends totaling P125,000. Loss on impairment of goodwill in 2020 amounted to P20,000. P Corp. uses the proportionate method in measuring non-controlling interest. Determine the non-controlling interest in net income on December 31, 2020. P53,200 b. P58,000 c. P49,200 d. P24,200 a.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 23E

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