Or alternatively Consolidated Net Income for 20x5 P Companys net income from

Or alternatively consolidated net income for 20x5 p

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Or, alternatively Consolidated Net Income for 20x5 P Company’s net income from own/separate operations…………. P 98,000 Realized gain on sale of equipment (downstream sales) through depreciation ___0 P Company’s realized net income from separate operations*…….….. P 98,000 S Company’s net income from own operations…………………………………. P 55,000 Unrealized gain on sales of equipment (upstream sales) (15,000) Realized gain on sale of equipment (upstream sales) through depreciation (P15,000 / 3 years) 5,000 S Company’s realized net income from separate operations*…….….. P 45,000 45,000 Total P143,000 Less: Non-controlling Interest in Net Income* * P 18,000 Amortization of allocated excess…………………… ____0 18,000 Controlling Interest in Consolidated Net Income or Profit attributable to equity holders of parent………….. P125,000 Add: Non-controlling Interest in Net Income (NCINI) _ 18,000 Consolidated Net Income for 20x5 P143,000 *that has been realized in transactions with third parties. **Non-controlling Interest in Net Income (NCINI) for 20x5 S Company’s net income of Subsidiary Company from its own operations (Reported net income of S Company) P 55,000 Unrealized gain on sales of equipment (upstream sales) ( 15,000) Realized gain on sale of equipment (upstream sales) through depreciation 5,000 S Company’s realized net income from separate operations……… P 45,000 Less: Amortization of allocated excess 0 P 45,000 Multiplied by: Non-controlling interest % .......... 40% Non-controlling Interest in Net Income (NCINI) - partial goodwill P 18,000 Less: NCI on goodwill impairment loss on full-goodwill . . . . . . . . . . . . . . . . . . . . . 0 Non-controlling Interest in Net Income (NCINI) – full goodwill . . . . . . . . . . . . . P 18,000 23. a - refer to No. 22 computation
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24. a 25. a 26. b 27. d – the entry under the cost model would be as follows ; Accumulated depreciation……………………………………………. 4,000 Depreciation expenses (current year) – P6,000/3 years…. 2,000 Retained earnings (prior year – 20x4)……………………….. 2,000 28. d – the entry under the cost model would be as follows ; Accumulated depreciation……………………………………………. 10,000 Depreciation expenses (current year) – P15,000/3 years.. 5,000 Retained earnings (prior year – 20x5)……………………….. 5,000 29. a 30. b 31. c – P50,000/5 years = P10,000 per year starting January 1, 20x6. 32. b Depreciation expense recorded by Pirn P40,000 Depreciation expense recorded by Scroll 10,000 Total depreciation reported P50,000 Adjustment for excess depreciation charged by Scroll as a result of increase in carrying value of equipment due to gain on intercompany sale (P12,000 / 4 years) (3,000 ) Depreciation for consolidated statements P47,000 33. e Depreciation expense: Parent P 84,000 Subsidiary 60,000 Total P144,000 Less: Over-depreciation due to realized gain: [P115,000 – (P125,000 – P45,000)] = P35,000/8 years __ 4,375 Consolidated income statement P139,625 34. c 20x6 Unrealized gain on sale of equipment ( 56,000) Realized gain on sale of equipment (upstream sales) through depreciation ___7,000 Net ( 49,000) Selling price P 392,000 Less: Book value, 1/1/20x6 Cost, 1/1/20x2 P420,000 Less: Accumulated depreciation: P420,000/10 years x 2 years 84,000 336,00 0 Unrealized gain on sale of equipment P 56,000 Realized gain – depreciation: P56,000/8 years
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