ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 3, Problem 3.12E
To determine
Introduction:
The consolidated net income for any company can be calculated as the net income of a company with its subsidiaries in a specific periodbased on consolidation process.
To prepare: A report of net income by S company for the year
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Students have asked these similar questions
For the year ended December 31, the following results were given:
Dividend Paid Net Income
Parent Company P15,000 P30,200Subsidiary Company 4,000 9,400
Using the proportionate basis or partial goodwill method, compute the non-controlling interest on December 31.A. P 10,600 C. P 12,010B. P11,140 D. P 12,300
Note: Just use the information provided to solve the problem.
For the year ended December 31, the following results were given:
Dividend Paid Net Income
Parent Company P15,000 P30,200Subsidiary Company 4,000 9,400
Using the proportionate basis or partial goodwill method, compute the controlling interest on December 31:A. P 64,760 C. P 69,400B. P65,090 D. P 69,800
Note: Just use the information provided to arrive at the answer.
Set out below are the draft income statements of P and
its subsidiary S for the year ended 31 December 20X7.
On the 1 January 20X6 P purchased 75% of the
ordinary shares in S.
Revenue
Cost of sales and expenses
Gross profit
Operating expenses
Profit from operations
Finance costs
Profit before taxation
Tax
Profit for the year
P
$000
300
(180)
120
(47)
73
73
(25)
48
"8ª6 | 8 | 8 | 5ª | 86 | ª
S
$000
150
(70)
80
(23)
57
55
(16)
39
During the year S sold goods to P for $20,000, making
a mark up of one third. Only 20% of these goods were
sold before the end of the year, the rest were still in
inventory.
P values non-controlling interest using the fair value
method.
Prepare the consolidated income statement for the
year ended 31 December 20X7
Chapter 3 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 3 - What is the basic idea underlying the preparation...Ch. 3 - How might consolidated statements help an investor...Ch. 3 - Prob. 3.3QCh. 3 - Prob. 3.4QCh. 3 - Prob. 3.5QCh. 3 - Prob. 3.6QCh. 3 - Prob. 3.7QCh. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Prob. 3.10Q
Ch. 3 - Prob. 3.11QCh. 3 - Prob. 3.12QCh. 3 - What is meant by indirect control? Give an...Ch. 3 - Prob. 3.14QCh. 3 - Prob. 3.15QCh. 3 - Prob. 3.16QCh. 3 - Prob. 3.17QCh. 3 - Prob. 3.18QCh. 3 - Prob. 3.1CCh. 3 - Prob. 3.2CCh. 3 - Prob. 3.1.1ECh. 3 - Prob. 3.1.2ECh. 3 - Prob. 3.1.3ECh. 3 - Prob. 3.1.4ECh. 3 - Multiple-Choice Question on Variable Interest...Ch. 3 - Multiple-Choice Question on Variable Interest...Ch. 3 - Prob. 3.2.3ECh. 3 - Prob. 3.2.4ECh. 3 - Prob. 3.3.1ECh. 3 - Prob. 3.3.2ECh. 3 - Prob. 3.3.3ECh. 3 - Prob. 3.4.1ECh. 3 - Prob. 3.4.2ECh. 3 - Prob. 3.4.3ECh. 3 - Prob. 3.4.4ECh. 3 - Balance Sheet Consolidation On January 1, 20X3,...Ch. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Reporting for a Variable Interest Entity Gamble...Ch. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19.1PCh. 3 - Prob. 3.19.2PCh. 3 - Prob. 3.20PCh. 3 - Prob. 3.21PCh. 3 - Prob. 3.22PCh. 3 - Prob. 3.23PCh. 3 - Prob. 3.24PCh. 3 - Prob. 3.25PCh. 3 - Prob. 3.26PCh. 3 - Prob. 3.27PCh. 3 - Prob. 3.28PCh. 3 - Prob. 3.29PCh. 3 - Consolidated Worksheet at End of the First Year of...Ch. 3 - Prob. 3.31P
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