buildings 450000 306000 3 192000 4 12000 552000 Accounts payable 105000 88800

Buildings 450000 306000 3 192000 4 12000 552000

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buildings 450,000 306,000 (3) 192,000 (4) 12,000 552,000 Accounts payable…………… 105,000 88,800 193,800 Bonds payable………………… 240,000 120,000 360,000 Common stock, P10 par……… 600,000 600,000 Common stock, P10 par……… 240,000 (2) 240,000 Retained earnings, from above 658,200 217,200 688,170 Non-controlling interest………… ___ _____ ______ ___ (4) 2,640 (5) 9,600 (6) 6,240 __________ (2 83,040 (3) 18,000 (8) 780 (9) 17,340 ____100,680 Total P2,203,20 0 P1,074,00 0 P 979,350 P 979,350 P2,749,800 5. 1/1/20x4 a. On date of acquisition the retained earnings of parent should always be considered as the consolidated retained earnings, thus: Consolidated Retained Earnings, January 1, 20x4 Retained earnings - Parent Company, January 1, 20x4 (date of acquisition) P360,000 b. Non-controlling interest (partial-goodwill), January 1, 20x4 Common stock – Subsidiary Company…………………………………… P 240,000 Retained earnings – Subsidiary Company…………………………………. 120,000 Stockholders’ equity – Subsidiary Company.………….. P 360,000 Adjustments to reflect fair value - (over) undervaluation of assets and liabilities 90,000 Fair value of stockholders’ equity of subsidiary, January 1, 20x4………………… P 450,000 Multiplied by: Non-controlling Interest percentage…………... 20 Non-controlling interest (partial goodwill),……………………………….. P 90,000 c.
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Consolidated SHE: Stockholders’ Equity Common stock, P10 par P 600,000 Retained earnings 360,000 Parent’s Stockholders’ Equity / CI – SHE P 960,000 NCI, 1/1/20x4 ___90,000 Consolidated SHE, 1/1/20x4 P1,050,000 6. Note: The goodwill recognized on consolidation purely relates to the parent’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 - P Consolidated Net Income for 20x4 P Company’s net income from own/separate operations…………. P183,000 Unrealized gain on sale of equipment (downstream sales) (15,000) Realized gain on sale of equipment (downstream sales) through depreciation 2,250 P Company’s realized net income from separate operations*…….….. P170,250 S Company’s net income from own operations…………………………………. P 91,200 Unrealized gain on sale of equipment (upstream sales) ( 31,200) Realized gain on sale of equipment (upstream sales) through depreciation 3,900 S Company’s realized net income from separate operations*…….….. P 63,900 63,900 Total P234,150 Less: Non-controlling Interest in Net Income* * P 10,140 Amortization of allocated excess (refer to amortization above) 13,200 Goodwill impairment (impairment under partial-goodwill approach) 3,000 26,340 Controlling Interest in Consolidated Net Income or Profit attributable to equity holders of parent………….. P207,810 Add: Non-controlling Interest in Net Income (NCINI) _ 10,140 Consolidated Net Income for 20x4 P217,950 *that has been realized in transactions with third parties. b. NCI-CNI – P10,140 **Non-controlling Interest in Net Income (NCINI) for 20x4 S Company’s net income of Subsidiary Company from its own operations (Reported net income of S Company) P 91,200 Unrealized gain on sale of equipment (upstream sales) ( 31,200) Realized gain on sale of equipment (upstream sales) through depreciation 3,900 S Company’s realized net income from separate operations……… P 63,900 Less:
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