Fair value of stockholders equity of subsidiary January 1 20x4 P45000

Fair value of stockholders equity of subsidiary

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Fair value of stockholders’ equity of subsidiary, January 1, 20x4…… P450,00 0 Multiplied by: Non-controlling Interest percentage…………... 2 0 Non-controlling interest (partial-goodwill) ………………………………….. P 90,000 c. Consolidated SHE: Stockholders’ Equity Common stock, P10 par P 600,000 Retained earnings 360,000 P’s Stockholders’ Equity / CI - SHE P 960,000 NCI, 1/1/20x4 ___90,000 Consolidated SHE, 1/1/20x4 P1,050,00 0 6. Note: The goodwill recognized on consolidation purely relates to the P’s share. NCI is measured as a proportion of identifiable assets and goodwill attributable to NCI share is not recognized. 12/31/20x4: a. CI-CNI Consolidated Net Income for 20x4 Net income from own/separate operations P Company P168,00 0 S Company 60,000 Total P228,00 0 Less: Non-controlling Interest in Net Income* P 9,360 Amortization of allocated excess (refer to amortization above) 13,200 Goodwill impairment (impairment under partial-goodwill approach) 3,00 0 25,560
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Controlling Interest in Consolidated Net Income or Profit attributable to equity holders of parent………….. P202,44 0 Add: Non-controlling Interest in Net Income (NCINI) 9,360 Consolidated Net Income for 20x4 P211.800 b. NCI-CNI *Non-controlling Interest in Net Income (NCINI) for 20x4 Net income of S Company P 60,000 Less: Amortization of allocated excess / goodwill impairment (refer to amortization table above) 13,2 00 P 46,800 Multiplied by: Non-controlling interest % .......... 2 0% Non-controlling Interest in Net Income (NCINI) P 9,360 c. CNI, P211,800 – refer to (a) d. On subsequent to date of acquisition, consolidated retained earnings would be computed as follows: Consolidated Retained Earnings, December 31, 20x4 Retained earnings - P Company, January 1, 20x4 (date of acquisition) P360,00 0 Add: Controlling Interest in Consolidated Net Income or Profit attributable to equity holders of parent for 20x4 202,440 Total P562,44 0 Less: Dividends paid – P Company for 20x4 72,000 Consolidated Retained Earnings, December 31, 20x4 P490,44 0 e. Non-controlling interest (partial-goodwill),
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December 31, 20x4 Common stock – S Company, December 31, 20x4…… P 240,000 Retained earnings – S Company, December 31, 20x4 Retained earnings – S Company, January 1, 20x4 P120,00 0 Add: Net income of S for 20x4 60,000 Total P180,00 0 Less: Dividends paid – 20x4 36,000 144,00 0 Stockholders’ equity – S Company, December 31, 20x4 P 384,000 Adjustments to reflect fair value - (over) undervaluation of assets and liabilities, date of acquisition (January 1, 20x4) 90,000 Amortization of allocated excess (refer to amortization above) – 20x4 ( 13,20 0) Fair value of stockholders’ equity of subsidiary, December 31, 20x4…… P460,00 0 Multiplied by: Non-controlling Interest percentage…………... 2 0 Non-controlling interest (partial-goodwill) ………………………………….. P 92,160 f. Consolidated SHE: Stockholders’ Equity Common stock, P10 par P 600,000 Retained earnings 490,440 P’s Stockholders’ Equity / CI – SHE, 12/31/20x4 P1,090,44 0 NCI, 12/31/20x4 ___92,160 Consolidated SHE, 12/31/20x4 P1,182,60
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0 12/31/20x5: a. CI-CNI Consolidated Net Income for 20x5 Net income from own/separate operations: P Company P192,00 0 S Company 90,000 Total P282,00 0 Less: Non-controlling Interest in Net Income* P16,56 0 Amortization of allocated excess (refer to amortization above) __7,200 23,760 Controlling
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