Non controlling Interest in Net Income NCINI full goodwill P 9390 that has been

Non controlling interest in net income ncini full

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Non-controlling Interest in Net Income (NCINI) – full goodwill P 9,390 *that has been realized in transactions with third parties. c. CNI, P217,950 – 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 - Parent Company, January 1, 20x4 (date of acquisition) P360,000 Add: Controlling Interest in Consolidated Net Income or Profit attributable to equity holders of parent for 20x4 207,810 Total P567,810 Less: Dividends paid – Parent Company for 20x4 72,000 Consolidated Retained Earnings, December 31, 20x4 P495,810 e. Non-controlling interest (partial-goodwill), December 31, 20x4 Common stock – Subsidiary Company, December 31, 20x4…… P 240,000 Retained earnings – Subsidiary Company, December 31, 20x4 Retained earnings – Subsidiary Company, January 1, 20x4 P120,000 Add: Net income of subsidiary for 20x4 91,200 Total P211,200 Less: Dividends paid – 20x4 36,000 175,200 Stockholders’ equity – Subsidiary Company, December 31, 20x4 P 415,200 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 ( 13,200) Fair value of stockholders’ equity of subsidiary, December 31, 20x4…… P492,000 Unrealized gain on sale of equipment (upstream sales) ( 31,200) Realized gain on sale of equipment (upstream sales) through depreciation 3,900 Realized stockholders’ equity of subsidiary, December 31, 20x4…… P464,700 Multiplied by: Non-controlling Interest percentage…………... 20 Non-controlling interest (partial-goodwill) ………………………………….. P 92,940 Add: Non-controlling interest on full goodwill , net of impairment loss, 12/31/x4: [(P15,000 full – P12,000, partial = P3,000) – P750 impairment loss 2,250 Non-controlling interest (full-goodwill)…………….. P 95,190 f. Consolidated SHE: Stockholders’ Equity Common stock, P10 par P 600,000 Retained earnings 495,81 0 Parent’s Stockholders’ Equity / CI – SHE, 12/31/20x4 P1,095,81 0 NCI, 12/31/20x4 ___95,19 0
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Consolidated SHE, 12/31/20x4 P1,191,00 0 12/31/20x5: a. CI-CNI – P281,700 Consolidated Net Income for 20x5 P Company’s net income from own/separate operations…………. P192,000 Realized gain on sale of equipment (downstream sales) through depreciation 3,000 P Company’s realized net income from separate operations*…….….. P195,000 S Company’s net income from own operations…………………………………. P 90,000 Realized gain on sale of equipment (upstream sales) through depreciation 3,900 S Company’s realized net income from separate operations*…….….. P 93,900 93,900 Total P288,900 Less: Amortization of allocated excess…………………… 7,200 Consolidated Net Income for 20x5 P281,700 Less: Non-controlling Interest in Net Income* * 17,340 Controlling Interest in Consolidated Net Income or Profit attributable to equity holders of parent – 20x5………….. P264,360 *that has been realized in transactions with third parties.
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