realized in transactions with third parties 845000 8 Prince Companys share

Realized in transactions with third parties 845000 8

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realized in transactions with third parties 845,000 × .8 Prince Company’s share thereof 676,000 Controlling Interest in Consolidated net income P3,946,000 4. Noncontrolling Interest Calculation: Reported income of Serf Company P820,000 Plus: Intercompany profit considered realized in the current period 25,000 P845,000 Noncontrolling interest in Serf Company (.20 × 845,000) P169,000 5. NCI-CNI (No. 4) P 169,000 CI-CNI (No. 3) 3,946,000 CNI P4,115,000 or, Consolidated Net Income for 20x5 P Company’s net income from own/separate operations…………. P3,270,000 Realized gain on sale of equipment (downstream sales) through depreciation 0 P Company’s realized net income from separate operations…….….. P3,270,000 S Company’s net income from own operations…………………………………. P 820,000 Realized gain on sale of equipment (upstream sales) through depreciation* 25,000 Son Company’s realized net income from separate operations*……. ….. P 845,000 845,000 Total P4,115,000 Less: Amortization of allocated excess…………………… 0 Consolidated Net Income for 20x5 P4,115,000 Less: Non-controlling Interest in Net Income* * 169,000 Controlling Interest in Consolidated Net Income or Profit attributable to
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equity holders of parent – 20x5………….. P3,946,000 Or, alternatively Consolidated Net Income for 20x5 P Company’s net income from own/separate operations…………. P3,270,000 Realized gain on sale of equipment (downstream sales) through depreciation 0 P Company’s realized net income from separate operations…….….. P3,270,000 S Company’s net income from own operations…………………………………. P820,000 Realized gain on sale of equipment (upstream sales) through depreciation 25,000 S Company’s realized net income from separate operations…….….. P 845,000 845,000 Total P4,115,000 Less: Non-controlling Interest in Net Income* * P 169,000 Amortization of allocated excess…………………… 0 169,000 Controlling Interest in Consolidated Net Income or Profit attributable to equity holders of parent………….. P3,946,000 Add: Non-controlling Interest in Net Income (NCINI) _169,000 Consolidated Net Income for 20x5 P4,115,000 **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 820,000 Realized gain on sale of equipment (upstream sales) through depreciation 25,000 S Company’s realized net income from separate operations……… P 845,000 Less: Amortization of allocated excess 0 P845,000 Multiplied by: Non-controlling interest % .......... 20% Non-controlling Interest in Net Income (NCINI) – partial goodwill P 169,000 1/1/20x4: Selling price of equipment P 740,000 Less: BV of equipment Cost P1,280,000 Less: Accumulated depreciation: P1,280,000 / 8 years x 4 years* 640,000 640,000 Unrealized gain on sales – 1/1/20x4 P 100,000 Realized gain – depreciation: P100,000 / 4 years P 25,000 *the original life is 8 years as of 1/1/20x3, since the remaining life as of 1/1/20x4 in only 4 years, for purposes of computing the accumulated depreciation to determine the gain on sale, the difference of 4 years is presumed to be expired.
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