Answer the problem with solutions PROBLEM 3-9On January 2, 2022, Honesty Corporation purchased 80% of theoutstanding shares of Character Company for a consideration ofP19,000,000. Included in the price paid is control premium in the amountof P500,000. The acquisition-related cost amounts to P45,000. At thatdate, Character had P16,000,000 of ordinary shares outstanding andretained earnings of P6,400,000Istiqe omad2Character's equipment with a remaining life of 5 years had a book valueof P9,000,000 and a fair value of P10,520,000. Character's remainingassets had book values equal to their fair values.ons aleas onlad be assim 08 er boriupos wordThe income and dividend figures for both Honesty and Character are asfollows: Net income of Honesty in 2022 is P3,600,000; 2023 isP4,400,000. Net income of Character in 2022 is P1,360,000; 2023 isP2,040,000. Dividends declared by Honesty in 2022 is P880,000; 2023 isP1,560,000. Dividends declared by Character in 2022 is P280,000; 2023is P520,000. Honesty' retained earnings at the date of acquisition wasP13,800,000.Required1. What is the consolidated net income in 2023? to bad2. What is the non-controlling interest in net assets in 2023?

Consolidated net income is the total income of the group reduced by inter-company eliminations.

On January 2, 2022, Honesty Corporation purchased 80% of the THO outstanding shares of Character Company for a consideration of P19,000,000. Included in the price paid is control premium in the amount of P500,000. The acquisition-related cost amounts to P45,000. At that date, Character had P16,000,000 of ordinary shares outstanding and retained earnings of P6,400,000 Istiqomade Character's equipment with a remaining life of 5 years had a book value of P9,000,000 and a fair value of P10,520,000. Character's remaining assets had book values equal to their fair values. od brn 1219 08 at boriupos word The income and dividend figures for both Honesty and Character are as follows: Net income of Honesty in 2022 is P3,600,000; 2023 is P4,400,000. Net income of Character in 2022 is P1,360,000; 2023 is P2,040,000. Dividends declared by Honesty in 2022 is P880,000; 2023 is P1,560,000. Dividends declared by Character in 2022 is P280,000; 2023 is P520,000. Honesty' retained earnings at the date of acquisition was P13,800,000. Required 1. What is the consolidated net income in 2023? 2. What is the non-controlling interest in net assets in 2023?

On January 2, 2022, Honesty Corporation purchased 80% of the THO outstanding shares of Character Company for a consideration of P19,000,000. Included in the price paid is control premium in the amount of P500,000. The acquisition-related cost amounts to P45,000. At that date, Character had P16,000,000 of ordinary shares outstanding and retained earnings of P6,400,000 Istiqomade Character's equipment with a remaining life of 5 years had a book value of P9,000,000 and a fair value of P10,520,000. Character's remaining assets had book values equal to their fair values. od brn 1219 08 at boriupos word The income and dividend figures for both Honesty and Character are as follows: Net income of Honesty in 2022 is P3,600,000; 2023 is P4,400,000. Net income of Character in 2022 is P1,360,000; 2023 is P2,040,000. Dividends declared by Honesty in 2022 is P880,000; 2023 is P1,560,000. Dividends declared by Character in 2022 is P280,000; 2023 is P520,000. Honesty' retained earnings at the date of acquisition was P13,800,000. Required 1. What is the consolidated net income in 2023? 2. What is the non-controlling interest in net assets in 2023?

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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