4. On January 1, 20x2, Oblong Co. acquired the remaining 20% interest in Round Inc. for P 80,000. How much is the gain or loss on the acquisition to be recognized in the consolidated financial statements? 5. On January 1, 20x2, Oblong Co. acquired the remaining 20% interest for P100,000. Non-controlling interest were measured using the proportionate share method. How much is non-controlling interest in the net assets of the acquiree in the consolidated financial statements prepared immediately after the acquisition? 6. On January 1, 20x2, Oblong Co. acquired additional 10% interest for P 100,000. Non-controlling interests were measured using the proportionate share method. How much is non-controlling interest in the net assets of the acquiree in the consolidated financial statements prepared immediately after the acquisition? 7. On January 1, 20x2, Oblong Co. acquired additional 10% interest for P100,000. Non-controlling interests were measured using the proportionate share method. How much is consolidated retained earnings immediately after the acquisition? 8. On January 1, 20x2, Oblong Co. sold 60% out of its 80% interest in Round Inc. for P 120,000. The sale resulted to loss of control. The remaining interest is classified as held for trading. How much is the gain or loss on the sale? Direction: Provide what is asked. Show your solution. 1. On January 1, 20x1, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of P15 per share. On this date, XYZ's total equity was P74,000. The investment in subsidiary is measured at cost. XYZ's assets and liabilities approximate their fair values on January 1, 20x1 except for the following: XYZ, Inc. Carrying amounts Fair values Fair value adjustments Inventory 23,000 31,000 8,000 Equipment (4 yrs. remaining life) 40,000 48,000 8,000 Total 63,000 79,000 16,000 There were no intercompany transactions during 20x1. However, it was determined that goodwill is impaired by P1,000. How much is the goodwill attributable to NCI as of December 31, 20x1 2.On January 1, 20x2, ABC Co. sells 60% out of its 80% interest in XYZ, Inc. for P100,000. ABC's remaining 20% interest in XYZ has a fair value of P25,000. This gives ABC significant influence over XYZ. The statements of financial position immediately before the sale are shown below: Statements of financial position As at January 1, 20x2 ABC Co. XYZ, Inc. Consolidated ASSETS Cash 23,000 57,000 80,000 Accounts receivable 75,000 22,000 97,000 Inventory 105,000 15,000 120,000 Investment in subsidiary 75,000 - - Equipment 200,000 50,000 260,000 Accumulated depreciation (60,000) (20,000) (84,000) Goodwill - - 3,000 TOTAL ASSETS 418,000 124,000 476,000 LIABILITIES AND EQUITY Accounts payable 43,000 30,000 73,000 Bonds payable 30,000 - 30,000 Total liabilities 73,000 30,000 103,000 Share capital 170,000 50,000 170,000 Share premium 65,000 - 65,000 Retained earnings 110,000 44,000 118,000 Non-controlling interest -- 20,000 Total equity 345,000 94,000 373,000 TOTAL LIAB. & EQTY. 418,000 124,000 476,000 How much is the gain (loss) on the disposal? 3.Selected information from the separate and consolidated balance sheets and income statements of Pare, Inc. and its subsidiary, Shel Co., as of December 31, 1994, and for the year then ended is as follows: Pare Shel Consolidated Balance sheet accounts: Accounts receivable 52,000 38,000 78,000 Inventory 60,000 50,000 104,000 Income statement accounts: Revenues 400,000 280,000 616,000 Cost of goods sold 300,000 220,000 462,000 Gross profit 100,000 60,000 154,000 Additional information: During 1994, Pare sold goods to Shel at the same markup on cost that Pare uses for all sales. At December 31, 1994, what was the amount of Shel's payable to Pare for intercompany sales? 4. On January 1, 20x2, Oblong Co. acquired the remaining 20% interest in Round Inc. for P 80,000. How much is the gain or loss on the acquisition to be recognized in the consolidated financial statements? 5. On January 1, 20x2, Oblong Co. acquired the remaining 20% interest for P100,000. Non-controlling interest were measured using the proportionate share method. How much is non-controlling interest in the net assets of the acquiree in the consolidated financial statements prepared immediately after the acquisition? 6. On January 1, 20x2, Oblong Co. acquired additional 10% interest for P 100,000. Non-controlling interests were measured using the proportionate share method. How much is non-controlling interest in the net assets of the acquiree in the consolidated financial statements prepared immediately after the acquisition? 7. On January 1, 20x2, Oblong Co. acquired additional 10% interest for P100,000. Non-controlling interests were measured using the proportionate share method. How much is consolidated retained earnings immediately after the acquisition? 8. On January 1, 20x2, Oblong Co. sold 60% out of its 80% interest in Round Inc. for P 120,000. The sale resulted to loss of control. The remaining interest is classified as held for trading. How much is the gain or loss on the sale? Direction: Provide what is asked. Show your solution. 1. On January 1, 20x1, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of P15 per share. On this date, XYZ's total equity was P74,000. The investment in subsidiary is measured at cost. XYZ's assets and liabilities approximate their fair values on January 1, 20x1 except for the following: XYZ, Inc. Carrying amounts Fair values Fair value adjustments Inventory 23,000 31,000 8,000 Equipment (4 yrs. remaining life) 40,000 48,000 8,000 Total 63,000 79,000 16,000 There were no intercompany transactions during 20x1. However, it was determined that goodwill is impaired by P1,000. How much is the goodwill attributable to NCI as of December 31, 20x1 2.On January 1, 20x2, ABC Co. sells 60% out of its 80% interest in XYZ, Inc. for P100,000. ABC's remaining 20% interest in XYZ has a fair value of P25,000. This gives ABC significant influence over XYZ. The statements of financial position immediately before the sale are shown below: Statements of financial position As at January 1, 20x2 ABC Co. XYZ, Inc. Consolidated ASSETS Cash 23,000 57,000 80,000 Accounts receivable 75,000 22,000 97,000 Inventory 105,000 15,000 120,000 Investment in subsidiary 75,000 - - Equipment 200,000 50,000 260,000 Accumulated depreciation (60,000) (20,000) (84,000) Goodwill - - 3,000 TOTAL ASSETS 418,000 124,000 476,000 LIABILITIES AND EQUITY Accounts payable 43,000 30,000 73,000 Bonds payable 30,000 - 30,000 Total liabilities 73,000 30,000 103,000 Share capital 170,000 50,000 170,000 Share premium 65,000 - 65,000 Retained earnings 110,000 44,000 118,000 Non-controlling interest -- 20,000 Total equity 345,000 94,000 373,000 TOTAL LIAB. & EQTY. 418,000 124,000 476,000 How much is the gain (loss) on the disposal? 3.Selected information from the separate and consolidated balance sheets and income statements of Pare, Inc. and its subsidiary, Shel Co., as of December 31, 1994, and for the year then ended is as follows: Pare Shel Consolidated Balance sheet accounts: Accounts receivable 52,000 38,000 78,000 Inventory 60,000 50,000 104,000 Income statement accounts: Revenues 400,000 280,000 616,000 Cost of goods sold 300,000 220,000 462,000 Gross profit 100,000 60,000 154,000 Additional information: During 1994, Pare sold goods to Shel at the same markup on cost that Pare uses for all sales. At December 31, 1994, what was the amount of Shel's payable to Pare for intercompany sales