PROBLEM 4-5 On January 1, 2020, Pet Company purchased 80% of the shares of Sam Company at book value. The shareholders' equity of Sam Company on that date showed: Ordinary Shares- P570,000 and Retained eamings- P490,000. On April 30, 2020, Pet acquired used machinery for P84,000 from Sam that was being carried in the latter's books at P105,000. The asset still has a remaining useful life of 5 years. On the other hand, on August 31, 2020, Sam purchased an equipment that was already 20% depreciated from Pet for P345,000. The original cost of this equipment was P375,000 and had a remaining life of 8 years. Net income of Pet Company and Sam Company for 2020 amounted to P360,000 and P155,000. Dividends paid totaled to P115,000 and P52,500 for Pet and Sam, respectively. Required: On the consolidated financial statements in 2020, how much would be the: 1. Net income attributable to parents' shareholders' equity. 2. Non-controlling interest in the net income of subsidiary (NCINIS).

PROBLEM 4-5 On January 1, 2020, Pet Company purchased 80% of the shares of Sam Company at book value. The shareholders' equity of Sam Company on that date showed: Ordinary Shares- P570,000 and Retained eamings- P490,000. On April 30, 2020, Pet acquired used machinery for P84,000 from Sam that was being carried in the latter's books at P105,000. The asset still has a remaining useful life of 5 years. On the other hand, on August 31, 2020, Sam purchased an equipment that was already 20% depreciated from Pet for P345,000. The original cost of this equipment was P375,000 and had a remaining life of 8 years. Net income of Pet Company and Sam Company for 2020 amounted to P360,000 and P155,000. Dividends paid totaled to P115,000 and P52,500 for Pet and Sam, respectively. Required: On the consolidated financial statements in 2020, how much would be the: 1. Net income attributable to parents' shareholders' equity. 2. Non-controlling interest in the net income of subsidiary (NCINIS).

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 19E

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