Problem: Dia Corp. acquired a 70% interest in Rubie Co. in 2021. For the year ended December 31, 2021 and 2022, Rubie Co reported net income of P160,000 and P180,000, respectively. During 2021, Rubie sold merchandise to Dia Corp. for P20,000 at a profit of P4,000. The merchandise was later resold by Dia Corp. to outsider for P30,000 during 2022. Required: For consolidation purposes, what is the non-controlling interest's share of Room's net income for 2021. • For consolidation purposes, what is the non-controlling interest's share of Room's net income for 2022.

Problem: Dia Corp. acquired a 70% interest in Rubie Co. in 2021. For the year ended December 31, 2021 and 2022, Rubie Co reported net income of P160,000 and P180,000, respectively. During 2021, Rubie sold merchandise to Dia Corp. for P20,000 at a profit of P4,000. The merchandise was later resold by Dia Corp. to outsider for P30,000 during 2022. Required: For consolidation purposes, what is the non-controlling interest's share of Room's net income for 2021. • For consolidation purposes, what is the non-controlling interest's share of Room's net income for 2022.

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 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

See similar textbooks

Similar questions

During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 loss
Income Statement, Lower Portion Cunningham Company reports a retained earnings balance of 365,200 at the beginning of 2019. For the year ended December 31, 2019, the company reports pretax income from continuing operations of 150,500. The following information is also available pertaining to 2019: 1. The company declared and paid a 0.72 cash dividend per share on the 30,000 shares of common stock that were outstanding the entire year. 2. The company incurred a pretax 21,000 loss as a result of an earthquake, which is not unusual for the area. This is included in the 150,500 income from continuing operations. 3. The company sold Division P (a component of the company) in May. From January through May, Division P had incurred a pretax loss from operations of 33,000. A pretax gain of 15,000 was recognized on the sale of Division P. Required: Assuming that all the pretax items are subject to a 30% income tax rate: 1. Complete the lower portion of Cunningham's 2019 income statement beginning with Pretax Income from Continuing Operations. Include any related note to the financial statements. 2. Prepare an accompanying retained earnings statement.
Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________
P Company acquired a 75% interest in S Company in 2018. S reported net income of P325,000 in 2020. During 2019, there was an upstream sales of merchandise for P76,000 at a cost of P52,000. Two-fifths of the merchandise was later resold by P to outsiders for P35,000 during 2020. In 2020, P purchased merchandise from S for P88,000 at a profit of P32,000. One-fourth of the merchandise was resold by P to outsiders for P27,000 during 2020. Compute the non-controlling interest in net income in 2020
ABC Company owns an 80% interest in XYZ Corporation at underlying book value. ABC’s investment in XYZ Corporation is carried on cost. During 2022, XYZ Corp. sold merchandise to ABC Co. for P500,000 at a mark-up of 25%. At December 31, 2022, half of his merchandise is included in ABC’s inventory. Meanwhile, included in XYZ’s beginning inventory was P200,000 merchandise from inter-company sales which was made at 20% gross profit. ABC and XYZ declared dividends P300,000 and P250,000 respectively and paid 90% of the declared amount in 2022. Separate income statement for ABC and XYZ for the year ended, 2022 are summarized as follows: ABC Co. XYZ Corp. Sales P1,500,000 P2,000,000 Cost of sales (800,000) (1,200,000) Operating expenses (300,000) (420,000) Dividend revenue 200,000 140,000 Net income P600,000 P520,000 What is the net income attributable to the controlling interest? How much is the consolidated cost of sales for 2022?
What are the consolidated balances for? Cost of Goods Sold Net income attributable to non-controlling Interest ClipRite sold ProForm inventory costing $72,000 during the last six months of 2020 for $120,000. At year-end, 30 percent remained ClipRite sold ProForm inventory costing $200,000 during 2021 for $250,000. At yearend, 10% percent is left. Proform acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash. Based on ClipRites acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2021 financial statements are as follows: Proform ClipRite Sales -800,000 -600,000 Costs of goods sold 535,000 400,000 Operating expenses 100,000 100,000 Dividend Income -35,000 Net Income…
Use the following to answer questions 8 through 10: On May 1, 2021, Jazzie Co. agreed to sell the assets of its Mister Division to Shawna Inc. for $80 million. The sale was completed on December 31, 2021. Jazzie’s year ends on December 31st. The following additional facts pertain to the transaction: The Mister Division qualifies as a component of an entity as defined by GAAP. Mister's net assets totaled $48 million on Jazzie's books at the time of the sale. Mister incurred a pre-tax operating loss of $10 million in 2021. Jazzie’s income tax rate is 40%. In the 2021 income statement for Jazzie Co., they would report after tax income from discontinued operations of: Group of answer choices $9.2 million. $13.2 million. $22 million. $26 million.
What are the consolidated balances for? Cost of Goods Sold Net income attributable to non controlling Interest Information: ClipRite sold ProForm inventory costing $72,000 during the last six months of 2020 for $120,000. At year-end, 30 percent remained ClipRite sold ProForm inventory costing $200,000 during 2021 for 250,000. At yearend, 10% percent is left. Proform acquired 70 percent of ClipRite on June 30, 2020, for $910,00 in cash. Based on ClipRites acquistion-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acuisition. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2021 financial statements are as follows: Proform ClipRite Sales -800,000 -600,000 Costs of goods sold 535,000 400,000 Operating expenses 100,000 100,000 Dividend Income -35,000 Net Income -200,000 -100,000 Retained…
On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain on acquisition of P100,000. Net assets of SCO were fairly valued except for inventory which was understated by P1,500,000. A third of these inventories remained unsold as of the end of the calendar year. The operations of the two companies for 2021 are as follows: PCO SCO Sales P3,100,000 P2,600,000 (COGS) (1,300,000) (1,250,000) Gross profit 1,800,000 1,350,000 (OPEX) (200,000) (150,000) Other income 0 200,000 (Other expenses) (120,000) 0 Net income P1,480,000 P 400,000 Q1: In the consolidated statement of comprehensive income for the year ended December 31, 2021, how much is the cost of goods sold? 1,550,000 1,850,000 3,550,000 3,250,000 Q2: based on the information above, In the consolidated statement of comprehensive income for the year ended December 31, 2021, how much is the consolidated net income attributable to…