On January 1, 20x1, Rooster Co. acquired 75% interest in Cockerel Co. for P600,000. At this time, Cockerel's net identifiable assets have a carrying amount of P720,000 which approximates fair value. NCI was assigned a fair value of P220,000. During 20x1, Rooster sold goods to Cockerel for P600,000, having bought them for p480,000. A quarter of these goods remain unsold at year-end. Goodwill on acquisition of Cockerel has been tested for impairment and found to be impaired (in total) by P32,000 for the current year. The individual statements of profit or loss and other comprehensive income of the entities for the year ended December 31, 20x1 are shown below: Rooster Co. 4,000,000 (1,600,000) 2,400,000 40,000 Cockerel Co. 2,800,000 (1,200,000) 1,600,000 Revenue Cost of sales Gross proft Dividend income from Cockerel Co. Distribution costs Administrative costs Profit before tax Income taK expense (B00,000) (320,000) 1,320,000 (384,000) 936.000 296.000 1,232,00o (400,000) (200,000) 1,000,000 (300,000) 700,000 100,000 800,000 Profit after tax Other comprehensive income Comprehensive income How much is the profit attributable to owners of the parent?
On January 1, 20x1, Rooster Co. acquired 75% interest in Cockerel Co. for P600,000. At this time, Cockerel's net identifiable assets have a carrying amount of P720,000 which approximates fair value. NCI was assigned a fair value of P220,000. During 20x1, Rooster sold goods to Cockerel for P600,000, having bought them for p480,000. A quarter of these goods remain unsold at year-end. Goodwill on acquisition of Cockerel has been tested for impairment and found to be impaired (in total) by P32,000 for the current year. The individual statements of profit or loss and other comprehensive income of the entities for the year ended December 31, 20x1 are shown below: Rooster Co. 4,000,000 (1,600,000) 2,400,000 40,000 Cockerel Co. 2,800,000 (1,200,000) 1,600,000 Revenue Cost of sales Gross proft Dividend income from Cockerel Co. Distribution costs Administrative costs Profit before tax Income taK expense (B00,000) (320,000) 1,320,000 (384,000) 936.000 296.000 1,232,00o (400,000) (200,000) 1,000,000 (300,000) 700,000 100,000 800,000 Profit after tax Other comprehensive income Comprehensive income How much is the profit attributable to owners of the parent?
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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