Requirements: WHAT IS THE AMOUNT OF:A. Goodwill to be reported on the consolidated balance sheet on January 1, 2x19?B. Non-controlling interest on January 1, 2x19?C. Consolidated operating expenses for 2x19?D. Consolidated profit attributable to parent on December 31, 2x19?E. Non-controlling interest in profit of Subsidiary Company on December 31, 2x19?F. Non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2x19?G. Consolidated retained earnings attributable to Parent's shareholder equity on December 31, 2x19?H. Total consolidated assets on December 31, 2x19? On January 5, 20x9, Parent Company acquired 80% of the outstanding shares of Subsidiary Company for P350,000.The financial statements of Parent and Subsidiary Company before the acquisition follow:ParentSubsidiaryParentCompany Company700,000300,0001,000,000500,000ValueCashInventory100,000 100,00050,00055,000350,000 365,000200,000 200,000200,000100,000PPELiabilitiesOutstanding SharesRetained earnings1,000,000500,000Financial statements for Parent and Subsidiary for the year ended December 31, 2x19 follow:INCOME AND RETAINED EARNINGSParentSubsidiaryCompany Company800,00040,000(480,000)(60,000)300,000500,000(100,000)700,000Sales550,000Dividend incomeCost of salesOperating expensesNet incomeRetained earnings, Jan 1, 2019Dividends declared(250,000)(150,000)150,000100,000(50,000)200,000Retained earnings endBALANCE SHEETCash300,000100,000650,000350,000900,0002,300,000ReceivablesInventoryInvestment in Subsidiary125,00030,00045,000PPE350,000Total550,000Liabilities600,0001,000,000700,0002,300,000150,000200,000Outstanding sharesRetained eanings200,000550,000TotalAdditional Information:1.The undervalued PPE of Subsidiary on the date of acquisition has a remaining useful life of 5-years.Subsidiary Company owes Parent Company P5,000 on December 31, 2x19.2.

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Requirements: WHAT IS THE AMOUNT OF: A. Goodwill to be reported on the consolidated balance sheet on January 1, 2x19? B. Non-controlling interest on January 1, 2x19? C. Consolidated operating expenses for 2x19? D. Consolidated profit attributable to parent on December 31, 2x19? E. Non-controlling interest in profit of Subsidiary Company on December 31, 2x19? F. Non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2x19? G. Consolidated retained earnings attributable to Parent's shareholder equity on December 31, 2x19? H. Total consolidated assets on December 31, 2x19?

Requirements: WHAT IS THE AMOUNT OF: A. Goodwill to be reported on the consolidated balance sheet on January 1, 2x19? B. Non-controlling interest on January 1, 2x19? C. Consolidated operating expenses for 2x19? D. Consolidated profit attributable to parent on December 31, 2x19? E. Non-controlling interest in profit of Subsidiary Company on December 31, 2x19? F. Non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2x19? G. Consolidated retained earnings attributable to Parent's shareholder equity on December 31, 2x19? H. Total consolidated assets on December 31, 2x19?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 38P

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On January 1, 20x8, Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary’s Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 20x8 is P210,000. During the year, Parent sold goods to Subsidiary for P150,000 at a 25% mark-up and in turn purchased P200,000 of Subsidiary’s goods which Subsidiary sold at a 20% mark-up. From the goods purchased, P50,000 remain in Parent’s books at the end of the year, while P20,000 remain in Subsidiary’s books at the end of the year. 30% of the undervalued inventory of Subsidiary still remain unsold by the end of 20x8. The following are…
On January 1, 20x8,Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary’s Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 20x8 is P210,000. The following are taken from the books of Parent and Subsidiary for 20x8: Determine the Non-Controlling Interest as of December 31, 20x8. Your answer
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On January 1, 2022, Pet Company purchased 80% of the shares of Sam Company for P1,000,000. The shareholders' equity of Sam Company on that date showed: Ordinary Shares - P570,000 and Retained Earnings - P490,000. Non-controlling interest is initially measured at proportionate share of subsidiary's net assets.On April 30, 2022, 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, 2022, 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 aremaining life of 8 years.Net income of Pet Company and Sam Company for 2022 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 2022, how much would be the carrying value of Property and Equipment?
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