Amortization of allocated excess P 41100 Multiplied by Non controlling interest

# Amortization of allocated excess p 41100 multiplied

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Amortization of allocated excess 0 P 41,100 Multiplied by: Non-controlling interest % .......... 20% Non-controlling Interest in Net Income (NCINI) - partial goodwill P 8,220 Less: NCI on goodwill impairment loss on full-goodwill . . . . . . . . . . . . . . . . . . . . . 0 Non-controlling Interest in Net Income (NCINI) – full goodwill . . . . . . . . . . . . . P 8,220 102. d – the unrealized gain amounted to P15,000 (P60,000 – P45,000). It should be noted that PAS 27 allow the use of cost model in accounting for investment in subsidiary in the books of parent company but not the equity method. Since, the cost model is presumed to be the method used, the unrealized gain of P15,000 (P60,000 – P45,000) will not be recorded in the books of parent company, which give rise to no equity- adjustments at year-end. 103. c Cliff reported income P225,000 Less: Intercompany gain on truck 45,000 Plus: Piecemeal recognition of gain = P45,000/10 years ___4,500 Cliff’s adjusted income P184,500 Majority percentage 90% Income from Cliff P166,050 104. c Pied Imperial-Pigeon’s share of Roger’s income = (P320,000 x 90%) = P288,00 0 Less: Profit on intercompany sale (P130,000 - P80,000) x 90% = 45,000 Add: Piecemeal recognition of deferred profit (\$50,000/4 years)90% = 11,250 Income from Offshore P254,25 0 105 c

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P30,000 - (1/4 x P30,000) = P 22,500 106. d - P60,000 – P48,000)/4 years = P3,000 107. a Simon, 4/1/20x4 Selling price P68,250 Less: Book value, 4/1/20x4 Cost, 1/1/20x4 P50,000 Less: Accumulated depreciation : P50,000/10 years x 3/12 __1,250 48,750 Unrealized gain on sale of equipment P19,500 Realized gain – depreciation: P19,500/9.75 years P 2,000 108. c – P2,000 x 9/12 (April 1, 20x4 – December 31, 20x4) = P1,500 109. c – P19,500 / 9.75 years = P2,000 110. c – P19,500 / 9.75 years = P2,000 111. d 20x4 Share in subsidiary net income (100,000 x 90%) 90,000 Unrealized gain on sale of equipment (downstream sales) ( 19,500) Realized gain on sale of equipment (downstream sales) through depreciation P2,000 x 9/12 (April 1, 20x4 – December 31, 20x4) = P1,500 _ 1,500 Net 72,000 112. b 20x5 Share in subsidiary net income (120,000 x 90%) 108,000 Realized gain on sale of equipment (downstream sales) through depreciation _ 2,000 Net 110,000 113. d 20x6 Share in subsidiary net income (130,000 x 90%) 117,000 Realized gain on sale of equipment (downstream sales) through depreciation _ 2,000 Net 119,000 114. c Smeder, 1/1/20x4 Selling price P84,000 Less: Book value, 1/1/20x4 Cost, 1/1/20x4 P120,000 Less: Accumulated depreciation __48,000 72,000 Unrealized gain on sale of equipment P12,000 Realized gain – depreciation: P12,000/6 years P 2,000 115. b 20x4 Share in subsidiary net income (28,000 x 80%) 22,400 Unrealized gain on sale of equipment (upstream sales); 12,000 x 80% ( 9,600) Realized gain on sale of equipment (upstream sales) through depreciation
P2,000 x 80% _ 1,600 Net 14,400 116. c 20x5 Share in subsidiary net income (32,000 x 80%) 25,600 Realized gain on sale of equipment (upstream sales) through depreciation P2,000 x 80% _ 1,600 Net 27,200 117. d Eliminating entries: 1/1/20x4: date of acquisition Restoration of BV and eliminate unrealized gain Equipment 36,000 Gain 12,000 Accumulated depreciation 48,000 Parent – Smeder Subsidiary - Collins Cash 84,000 Equipment 84,000 Accumulated depreciation 48,000 Cash 84,000 Equipment 120,000 Gain 12,000 Smeder, 1/1/20x4 Selling price P84,000 Less: Book value, 1/1/20x4 Cost, 1/1/20x4 P120,000 Less: Accumulated depreciation __48,000 72,000 Unrealized gain on sale of equipment P12,000 Realized gain – depreciation: P12,000/6 years P 2,000 Eliminating entries: 12/31/20x4: subsequent to date of acquisition Realized Gain – depreciation Accumulated depreciation 2,000 Depreciation expense 2,000

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