P 208800 S Companys net income from own operations P 135000 Unrealized gain on

P 208800 s companys net income from own operations p

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P Company’s realized net income from separate operations*…….….. P 208,800 S Company’s net income from own operations…………………………………. P 135,000 Unrealized gain on sale of equipment (upstream sales) Realized gain on sale of equipment (upstream sales) through depreciation ( 0) S Company’s realized net income from separate operations*…….….. P 135,000 135,000 Total P343,800 Less: Non-controlling Interest in Net Income* * (refer to No. 80) P 27,000 Amortization of allocated excess…………………… ____0 27,000 Controlling Interest in Consolidated Net Income or Profit attributable to equity holders of parent………….. P316,800 Add: Non-controlling Interest in Net Income (NCINI) _ _27,000 Consolidated Net Income for 20y2 P343,800 *that has been realized in transactions with third parties. 82. a – refer to No. 81 83. c Consolidated Retained Earnings, December 31, 20y2 Retained earnings - Parent Company, January 1, 20y1 (cost model) P1,300,000 Less: Downstream - net unrealized gain on sale of equipment – prior to 20y1 [P120,000 – (P8,000 x 1 year)] 112,000 Adjusted Retained Earnings – Parent 1/1/20y1 (cost model ) Son Company’s Retained earnings that have been realized in transactions with third parties.. P1,188,000 Adjustment to convert from cost model to equity method for purposes of consolidation or to establish reciprocity:/Parent’s share in adjusted net increased in subsidiary’s retained earnings: Retained earnings – Subsidiary, January 1, 20x9 P 800,000 Less: Retained earnings – Subsidiary, January 1, 20y1 1,040,000 Increase in retained earnings since date of acquisition P 240,000 Less: Amortization of allocated excess – 20x9 to – 20y0 0 Upstream - net unrealized gain on sale of equipment –prior to 20y1 0 P 240,000 Multiplied by: Controlling interests % ................... 80% P192,0 00 Less: Goodwill impairment loss 0 _192,000 Consolidated Retained earnings, January 1, 20x5 P1,380,000 Add: Controlling Interest in Consolidated Net Income or Profit attributable to equity holders of parent for 20x5 316,800 Total P1,696,800 Less: Dividends declared – Parent Company for 20y1 120,000 Consolidated Retained Earnings, December 31, 20y1 P1,576,800 0 Or, alternatively: Consolidated Retained Earnings, December 31, 20y2 Retained earnings - Parent Company, December 31, 20y1 (cost model) (P1,300,000 + P280,800 – P120,000) P1,460,800
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Less: Downstream - net unrealized gain on sale of equipment – prior to 12/31/20y1 [P120,000 – (P8,000 x 2 years)] 104,000 Adjusted Retained Earnings – Parent 12/31/20x5 (cost model ) S Company’s Retained earnings that have been realized in transactions with third parties.. P1,356,800 Adjustment to convert from cost model to equity method for purposes of consolidation or to establish reciprocity:/Parent’s share in adjusted net increased in subsidiary’s retained earnings: Retained earnings – Subsidiary, December 31, 20y2 (P1,040,000 + P135,000 – P100,000) P 1,075,000 Less: Retained earnings – Subsidiary, January 1, 20x9 800,000 Increase in retained earnings since date of acquisition P 275,000 Less: Accumulated amortization of allocated excess 0 Upstream - net unrealized gain on sale of equipment – prior to 12/31/20y2 ______ _0 P 275,000 Multiplied by: Controlling interests % ................... 80% P 220,000 Less: Goodwill impairment loss _____ 0 220,000 Consolidated Retained earnings, December 31, 20y2 P1,576,800 84. c Non-controlling interest (fulll-goodwill), December 31, 20y2
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