P 26520 P 1020 00 P 367200 Accounts receivable 18000 9600 276000 Inventory

P 26520 p 1020 00 p 367200 accounts receivable 18000

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P 265,20 0 P 102,0 00 P 367,200 Accounts receivable…….. 180,00 0 96,00 0 276,000 Inventory……………… …. 216,00 0 108,0 00 324,000 Land………………… …………. 210,00 0 48,00 0 (2) 7,200 265,200 Equipment 240,00 0 180,0 00 420,000 Buildings 720,00 0 540,0 00 (3) 216,00 0 1,044,0 00
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Discount on bonds payable (2) 3,600 (3) 1,200 2,400 Goodwill……………… …… (2) 9,000 9,000 Investment in S Co……… 405, 480 (1) 307,20 0 (2)70,4 40 (4) 27,840 - Total P2,236, 680 P1,07 4,000 P2,707, 800 Accumulated depreciation - equipment P 150,00 0 P 102,0 00 (2) 84,000 (3) 12,000 P180,00 0 Accumulated depreciation - buildings 450,00 0 306,0 00 (2) 198,00 0 (3) 6,000 552,000 Accounts payable…………… 120,0 00 120, 000 240,000 Bonds payable……………… 240,00 0 120,0 00 360,000 Common stock, P10 par……… 600,00 0 600,000 Common stock, P10 par……… 240,0 00 (1) 240,00 0 Retained earnings, from above 676,68 0 186,0 00 676,680 Non-controlling interest………… ___ _____ __ _____ __ (7) 9,60 0 (2 ) 76,800 (2) 15,360 ____99, 120
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______ ____ (5) 16,560 Total P2,236, 680 P1,07 4,000 P 794,40 0 P 794,40 0 P2,707, 800 Note: Using cost model or equity method, the consolidated net income, consolidated retained earnings, non-controlling interests, consolidated equity on December 31, 20x4 and 20x5 are exactly the same (refer to Problem VI solution). 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 - P Company, January 1, 20x4 (date of acquisition) P360,0 00 b. Non-controlling interest (partial-goodwill), January 1, 20x4 Common stock – S Company, January 1, 20x4…… P 240,00 0 Retained earnings – S Company, January 1, 20x4 120,00 0 Stockholders’ equity – S Company, January 1, 20x4 P 360,00 0 Adjustments to reflect fair value - (over) undervaluation of assets and liabilities, date of acquisition (January 1, 20x4) 90,000 Fair value of stockholders’ equity of subsidiary, January 1, 20x4…… P450,0 00 Multiplied by: Non-controlling Interest percentage…………... 20
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Non-controlling interest (partial-goodwill) ………………………………….. P 90,000 c. 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 ___90,0 00 Consolidated SHE, 1/1/20x4 P1,050, 000 6. 12/31/20x4: a. CI-CNI Consolidated Net Income for 20x4 Net income from own/separate operations P Company P168,0 00 S Company 60,000 Total P228,0 00 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 25,5 60 Controlling Interest in Consolidated Net Income or Profit attributable to equity holders of P………….. P202,4 40 Add: Non-controlling Interest in Net Income (NCINI) 9,36 0 Consolidated Net Income for 20x4 P211.8
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00 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) P360,0 00 Add: Controlling Interest in Consolidated Net Income or Profit attributable to
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