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Items 7 - 9: On January 2, 2022, Phillips Corporation purchase 80% of Signage Company's outstanding shares for P648,000. P30,000 of the excess is attributable to goodwill and the balance to an equipment with an economic life of ten years. Non-controlling interest is measured at its fair value on date of acquisition. On the date of acquisition, stockholders' equity of the two companies were as follows: Phillips Corporation Signage Company P 240,000 420,000 Ordinary shares P1,050,000 Retained earnings 1,560,000 On December 31, 2022, Signage Company reported net income of P105,000 and paid dividends of P36,000 to Philips. Philips reported from its separate operations of P285,000 and paid dividends of P138,000. Goodwill had been impaired and should be reported at P6,000 on December 31, 2022. 7) What is the non-controlling interest in profit of Signage Company on December 31, 2022? A. P 21,000 C. P 18,750 D. P 18,600 B. P 13,800 8) What is the consolidated profit attributable to parent shareholders on December 31, 2022? A P 328,500 B. P360,000 C. P336,000 D. P356,400 9) What amount of non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2022? A P164,250 B. P145,500 C. P166,800 D. P154,500

Items 7 - 9: On January 2, 2022, Phillips Corporation purchase 80% of Signage Company's outstanding shares for P648,000. P30,000 of the excess is attributable to goodwill and the balance to an equipment with an economic life of ten years. Non-controlling interest is measured at its fair value on date of acquisition. On the date of acquisition, stockholders' equity of the two companies were as follows: Phillips Corporation Signage Company P 240,000 420,000 Ordinary shares P1,050,000 Retained earnings 1,560,000 On December 31, 2022, Signage Company reported net income of P105,000 and paid dividends of P36,000 to Philips. Philips reported from its separate operations of P285,000 and paid dividends of P138,000. Goodwill had been impaired and should be reported at P6,000 on December 31, 2022. 7) What is the non-controlling interest in profit of Signage Company on December 31, 2022? A. P 21,000 C. P 18,750 D. P 18,600 B. P 13,800 8) What is the consolidated profit attributable to parent shareholders on December 31, 2022? A P 328,500 B. P360,000 C. P336,000 D. P356,400 9) What amount of non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2022? A P164,250 B. P145,500 C. P166,800 D. P154,500

Intermediate Accounting: Reporting And Analysis
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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7) What is the non-controlling interest in profit of Signage Company on December 31, 2022? A P21,000 C. P 18,750 D. P 18,600 B. P 13,800 8) What is the consolidated profit attributable to parent shareholders on December 31, 2022? A P 328,500 C. P336,000 D. P356,400 B. P360,000 9) What amount of non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2022? A. P164,250 C. P166,800 B. P145,500 D. P154,500 10)Perch acquired 70 percent of Salmon for P 875,000 at the beginning of 2022. The book value of Salmon at that date was P 1,000,000, and the entire purchase differential was identified as goodwill. The reported net income for Perch during 2022 and 2023 was P 46,000 and P 54,000, respectively, while the dividends declared during the two years were P 30,000 per year. How much noncontrolling interest would be reported in the 2023 end-of-year consolidated statement of financial position? A P 300,000 C. P 387,000 D. P 903,000 B. P 312,000
Transcribed Image Text:7) What is the non-controlling interest in profit of Signage Company on December 31, 2022? A P21,000 C. P 18,750 D. P 18,600 B. P 13,800 8) What is the consolidated profit attributable to parent shareholders on December 31, 2022? A P 328,500 C. P336,000 D. P356,400 B. P360,000 9) What amount of non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2022? A. P164,250 C. P166,800 B. P145,500 D. P154,500 10)Perch acquired 70 percent of Salmon for P 875,000 at the beginning of 2022. The book value of Salmon at that date was P 1,000,000, and the entire purchase differential was identified as goodwill. The reported net income for Perch during 2022 and 2023 was P 46,000 and P 54,000, respectively, while the dividends declared during the two years were P 30,000 per year. How much noncontrolling interest would be reported in the 2023 end-of-year consolidated statement of financial position? A P 300,000 C. P 387,000 D. P 903,000 B. P 312,000
Items 7 - 9: On January 2, 2022, Phillips Corporation purchase 80 % of Signage Company's outstanding shares for P648,000. P30,000 of the excess is attributable to goodwill and the balance to an equipment with an economic life of ten years. Non-controlling interest is measured at its fair value on date of acquisition. On the date of acquisition, stockholders' equity of the two companies were as follows: Phillips Corporation Signage Company P 240,000 420,000 Ordinary shares P1,050,000 1,560,000 Retained earnings On December 31, 2022, Signage Company reported net income of P105,000 and paid dividends of P36,000 to Philips. Philips reported from its separate operations of P285,000 and paid dividends of P138,000. Goodwill had been impaired and should be reported at P6,000 on December 31, 2022. 7) What is the non-controlling interest in profit of Signage Company on December 31, 2022? A P 21,000 C. P 18,750 D. P 18,600 B. P 13,800 8) What is the consolidated profit attributable to parent shareholders on December 31, 2022? A P 328,500 B. P360,000 C. P336,000 D. P356,400 9) What amount of non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2022? A P164,250 B. P145,500 C. P166,800 D. P154,500
Transcribed Image Text:Items 7 - 9: On January 2, 2022, Phillips Corporation purchase 80 % of Signage Company's outstanding shares for P648,000. P30,000 of the excess is attributable to goodwill and the balance to an equipment with an economic life of ten years. Non-controlling interest is measured at its fair value on date of acquisition. On the date of acquisition, stockholders' equity of the two companies were as follows: Phillips Corporation Signage Company P 240,000 420,000 Ordinary shares P1,050,000 1,560,000 Retained earnings On December 31, 2022, Signage Company reported net income of P105,000 and paid dividends of P36,000 to Philips. Philips reported from its separate operations of P285,000 and paid dividends of P138,000. Goodwill had been impaired and should be reported at P6,000 on December 31, 2022. 7) What is the non-controlling interest in profit of Signage Company on December 31, 2022? A P 21,000 C. P 18,750 D. P 18,600 B. P 13,800 8) What is the consolidated profit attributable to parent shareholders on December 31, 2022? A P 328,500 B. P360,000 C. P336,000 D. P356,400 9) What amount of non-controlling interest is to be presented in the consolidated statement of financial position on December 31, 2022? A P164,250 B. P145,500 C. P166,800 D. P154,500
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