The identifiable assets and liabilities approximated their fair values except for inventories with carrying amount of P144,000 and fair value of P96,000 and building with carrying value amount of P240,000 and fair value of P250,000. The building has a remaining useful life of 8 years. > DDD Corp's retained earnings was P48,000 Non-controlling interest is measured at a fair value of P240,000 ummary of the individual financial information of the entities on December 31, 2021 is shown below: DDD Corp. АВС Со.

The identifiable assets and liabilities approximated their fair values except for inventories with carrying amount of P144,000 and fair value of P96,000 and building with carrying value amount of P240,000 and fair value of P250,000. The building has a remaining useful life of 8 years. > DDD Corp's retained earnings was P48,000 Non-controlling interest is measured at a fair value of P240,000 ummary of the individual financial information of the entities on December 31, 2021 is shown below: DDD Corp. АВС Со.

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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On January 2, 2021, Harry Co. acquired 60% interest in Louis Corp. for P360,000. Information on Louis Corp's financial position on acquisition date follows: The identifiable assets and liabilities approximated their fair values except for inventories with carrying amount of P144,000 and fair value of P96,000 and building with carrying value amount of P240,000 and fair value of P250,000. The building has a remaining useful life of 8 years. Louis's retained earnings was P48,000 Non-controlling interest is measured at a fair value of P240,000 A summary of the individual financial information of the entities on December 31, 2021 is shown below: Louis Co. Harry Co. Total Assets 550,000 1,550,000 Total Liabilities 132,000 34,000 Share Capital 300,000 1,200,000 Retained Earnings 118,000 316,000 Sales 350,000 700,000 Cost of Sales 80,000 200,000 Other Operating Expenses 200,000 400,000 How much is the consolidated profit?
On January 2, 2021, Harry Co. acquired 60% interest in Louis Corp. for P360,000. Information on Louis Corp's financial position on acquisition date follows: The identifiable assets and liabilities approximated their fair values except for inventories with carrying amount of P144,000 and fair value of P96,000 and building with carrying value amount of P240,000 and fair value of P250,000. The building has a remaining useful life of 8 years. Louis's retained earnings was P48,000 Non-controlling interest is measured at a fair value of P240,000 A summary of the individual financial information of the entities on December 31, 2021 is shown below: Louis Co. Harry Co. Total Assets 550,000 1,550,000 Total Liabilities 132,000 34,000 Share Capital 300,000 1,200,000 Retained Earnings 118,000 316,000 Sales 350,000 700,000 Cost of Sales 80,000 200,000 Other Operating Expenses 200,000 400,000 How much is the consolidated total assets?
Reuniclus Company acquired 55% of the outstanding common stock of Vanillite Company on August 1, 2019 at a total cost of P5,005,000. At acquisition date, Vanillite 's common stock and retained earnings amounted to P200,000 and P4,800,000, respectively. All of Vanillite 's assets and liabilities had fair values equal to book values as of the acquisition date except for patents which had a fair value of P1,800,000.and a book value of P400,000. Reuniclus had an inventory with a fair value of P800,000 and a carrying amount of P700,000. All inventories was sold at the end of the year. The patents have a remaining life of five years. For 2019, Vanillite had a net income of P1,600,000, incurred evenly and Reuniclus had a net income of P2,000,000.Compute the net income attributable to the non-controlling interest? A. P202,500 B. P247,500 C. Answer not given D. P549,000 E. P594,000
On January 1, 2021, April Company purchased 40% of the outstanding shares of another entity for P5,000,000 when the net assets of the investee amounted to P10,000,000. At acquisition date, the carrying amount of the identifiable assets and liabilities of the investee were equal to their fair values, except for equipment for which the fair value was P2,000,000 greater than its carrying amount and inventory whose fair value was P1,000,000 greater than its cost. The equipment has a remaining life of 4 years and the inventory was all sod during 2021. The investee reported net income of P6,000,000 for 2021 and paid no dividends during 2021. What is the maximum amount which could be included in April Company’s income before tax to reflect April’s equity in earnings of the investee?