On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of P1,632,000. On that date, JKL had P1,020,000 worth of outstanding shares and P1,020,000 worth of accumulated profits. For 2021, ABC Company had income of P571,200 from its own operations and paid dividends of P306,000. For 2021, JKL Company reported income of 132,600 and paid dividends of P61,200. All of the assets and liabilities of JKL have book values equal to their market values. On January 1, 2021, ABC sold equipment to JKL for P204,000. The book value of the equipment on that date was P244,800. The loss of P40,800 is reflected in the income of ABC indicated above. The equipment is expected to have a useful life of five years from the date of sale. In the December 21, 2021 consolidated statement of financial position, the net income attributable to equity holders of ABC should be presented at:
On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of P1,632,000. On that date, JKL had P1,020,000 worth of outstanding shares and P1,020,000 worth of accumulated profits. For 2021, ABC Company had income of P571,200 from its own operations and paid dividends of P306,000. For 2021, JKL Company reported income of 132,600 and paid dividends of P61,200. All of the assets and liabilities of JKL have book values equal to their market values. On January 1, 2021, ABC sold equipment to JKL for P204,000. The book value of the equipment on that date was P244,800. The loss of P40,800 is reflected in the income of ABC indicated above. The equipment is expected to have a useful life of five years from the date of sale. In the December 21, 2021 consolidated statement of financial position, the net income attributable to equity holders of ABC should be presented at:
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of P1,632,000. On that date, JKL had P1,020,000 worth of outstanding shares and P1,020,000 worth of accumulated profits . For 2021, ABC Company had income of P571,200 from its own operations and paid dividends of P306,000. For 2021, JKL Company reported income of 132,600 and paid dividends of P61,200. All of the assets and liabilities of JKL have book values equal to their market values. On January 1, 2021, ABC sold equipment to JKL for P204,000. The book value of the equipment on that date was P244,800. The loss of P40,800 is reflected in the income of ABC indicated above. The equipment is expected to have a useful life of five years from the date of sale. In the December 21, 2021 consolidated statement of financial position , the net income attributable to equity holders of ABC should be presented at:
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