On January 1, 20x4, Bristol Company acquired 80% of Animation Company's common stock for Php140,000 cash. At that date, Animation reported common stock outstanding Php100,000 and retained earnings of Php50,000, and the fair value of the non-controlling interest was Php35,000. The book values and fair values of Animation's assets and liabilities were equal, except for other intangible assets which had a fair value Php25,000 greater than book value and an 8-year remaining life. Animation reported the following data for 20x4 and 20x5: Year Net Income Comprehensive Income 20x4 Php12,500.00 Php5,000.00 20x5 17.500.00 22,500.00 Dividends paid Php2,500.00 5.000.00 In December 31, 20x4, Bristol's retained earnings is Php120,000, and reported net income of Php50,000 and paid dividends of Php15,000 both in 2014 and 2015. What is the consolidated comprehensive income reported for 20x4?
On January 1, 20x4, Bristol Company acquired 80% of Animation Company's common stock for Php140,000 cash. At that date, Animation reported common stock outstanding Php100,000 and retained earnings of Php50,000, and the fair value of the non-controlling interest was Php35,000. The book values and fair values of Animation's assets and liabilities were equal, except for other intangible assets which had a fair value Php25,000 greater than book value and an 8-year remaining life. Animation reported the following data for 20x4 and 20x5: Year Net Income Comprehensive Income 20x4 Php12,500.00 Php5,000.00 20x5 17.500.00 22,500.00 Dividends paid Php2,500.00 5.000.00 In December 31, 20x4, Bristol's retained earnings is Php120,000, and reported net income of Php50,000 and paid dividends of Php15,000 both in 2014 and 2015. What is the consolidated comprehensive income reported for 20x4?
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 8MC
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Question
On January 1, 20x4, Bristol Company acquired 80% of Animation Company's common stock
for Php140,000 cash. At that date, Animation reported common stock outstanding
Php100,000 and
interest was Php35,000. The book values and fair values of Animation's assets and liabilities
were equal, except for other intangible assets which had a fair value Php25,000 greater than
book value and an 8-year remaining life. Animation reported the following data for 20x4 and
20x5:
Year
Net Income
Comprehensive
Income
20x4 Php12,500.00 Php5,000.00
20x5
17.500.00
22,500.00
Dividends
paid
Php2,500.00
5.000.00
In December 31, 20x4, Bristol's retained earnings is Php120,000, and reported net income of
Php50,000 and paid dividends of Php15,000 both in 2014 and 2015.
What is the consolidated comprehensive income reported for 20x4?
Transcribed Image Text:On January 1, 20x4, Bristol Company acquired 80% of Animation Company's common stock
for Php140,000 cash. At that date, Animation reported common stock outstanding
Php100,000 and retained earnings of Php50,000, and the fair value of the non-controlling
interest was Php35,000. The book values and fair values of Animation's assets and liabilities
were equal, except for other intangible assets which had a fair value Php25,000 greater than
book value and an 8-year remaining life. Animation reported the following data for 20x4 and
20x5:
Year Net Income
20x4 Php12,500.00
20x5
17,500.00
Php59,375
Php49,875
In December 31, 20x4, Bristol's retained earnings is Php120,000, and reported net income of
Php50,000 and paid dividends of Php15,000 both in 2014 and 2015.
What is the consolidated comprehensive income reported for 20x4?
Select the correct response:
O Php49,500
Comprehensive
Income
Php5,000.00
Php65,000
22,500.00
Dividends
paid
Php2,500.00
5,000.00
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