On January 2, 2021. PABC corporation acquired 75% of the outstanding ordinary shares of SDEF Company for P513,000 cash, excluding direct acquisition costs. The investment was accounted for by the cost method. On January 2, 2021, SDEF’s identifiable net assets (book value and fair value) were P570,000. SDEF’s net income for the year ended December 31, 2021 was P304,000. During 2021, PABC received P21,600 cash dividends from SDEF. There were no other intercompany transactions. The balance of the Non-controlling interest in Net assets of subsidiary account on December 31, 2021 is A. 211,300 B. 76,000 C. 218,300 D. 218,500
On January 2, 2021. PABC corporation acquired 75% of the outstanding ordinary shares of SDEF Company for P513,000 cash, excluding direct acquisition costs. The investment was accounted for by the cost method. On January 2, 2021, SDEF’s identifiable net assets (book value and fair value) were P570,000. SDEF’s net income for the year ended December 31, 2021 was P304,000. During 2021, PABC received P21,600 cash dividends from SDEF. There were no other intercompany transactions. The balance of the Non-controlling interest in Net assets of subsidiary account on December 31, 2021 is A. 211,300 B. 76,000 C. 218,300 D. 218,500
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 30E
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Question
On January 2, 2021. PABC corporation acquired 75% of the outstanding ordinary
shares of SDEF Company for P513,000 cash, excluding direct acquisition costs.
The investment was accounted for by the cost method. On January 2, 2021,
SDEF’s identifiable net assets (book value and fair value) were P570,000. SDEF’s
net income for the year ended December 31, 2021 was P304,000. During 2021,
PABC received P21,600 cash dividends from SDEF. There were no other intercompany transactions. The balance of the Non-controlling interest in Net assets
of subsidiary account on December 31, 2021 is
A. 211,300
B. 76,000
C. 218,300
D. 218,500
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