6. Prepare the cost method and equity method journal entries of Large for each year. IV-Cost Model/Method Versus Equity Method When Pil Company. acquired 85% of Sill Corporation on January 1, 20x4, for P238.000, the imputed acquisition differential for allocated excess based on 100%) of P60,000 composed of P20,000 due to undervalued equipment (with 10-year life) and the balance was allocated entirely to goodwill. On December 31, 20x4, a goodwill impairment loss of P1,500 was recognized. Sill reported a net income of P40,000 and paid dividends of P9,000 in 20x4. Required: A. Assuming Pill reported a 20x4 separate net income of P55,000 and declared P5,000 dividends: 1. Using cost model, compute the following: a. Consolidated net income attributable to Pill's shareholders for 20x4. b. Consolidated net income attributable to non-controlling interest that would appear on the 20x4 consolidated income statement. C. Consolidated Net Income. d. If the retained earnings of Pill on the date of acquisition (i.e., January 1, 20x4) amounted to P75,000, the: 320 d.l. Retained earnings - Pill, January 1, 20x4. d.2. Retained earnings - Pill, December 31, 20x4 d.3. Consolidated retained earnings. December 31, 20x4 e. Investment in Sillon December 31, 20x4. 2. Using equity method, compute the following: a. Consolidated net income attributable to Pill's shareholders for 20x4. b. Consolidated net income attributable to non-controlling interest that would appear on the 20x4 consolidated income statement. C. Consolidated Net Income d. If the retained earnings of Pill on the date of acquisition (i.e., January 1, 20X4) amounted to P75,000, the: d.l. Retained earnings - Pill, January 1, 20x4. d.2. Retained earnings - Pill, December 31, 20x4 d.3. Consolidated retained earnings, December 31, 20x4 e. Investment in Sill on December 31, 20x4. 3. Reconcile the investment balance, December 31, 20x4 from cost model (No. le above) to equity method (No. 2e above). B. Assuming Pill declared P5.000 dividends for 20x4: 4. Using cost model and Pill reported a 20x4 net incom of P62,650, compute the following: a. Consolidated net income attributable to Pill's shareholders for 20x4. b. Consolidated net income attributable to non-controlling interest that would appear on the 20x4 consolidated income statement. C. Consolidated Net Income. d. If the retained earnings of Pill on the date of acquisition (i.e., January 1, 20x4] amounted to P75,000, the: d.1. Retained earnings - Pill, January 1, 20x4. d.2. Retained earnings - Pill, December 31, 20x4 d.3. Consolidated retained earnings, December 31, 20x4 e. Investment in Sill on December 31, 20x4. 5. Using equity method and Pill reported a 20x4 net income of P86,725, compute the following: a. Consolidated net income attributable to Pill's shareholders for 20x4. b. Consolidated net income attributable to non-controlling interest that would appear on the 20x4 consolidated income statement. C. Consolidated Net Income d. If the retained earnings of Pill on the date of acquisition (i.e., January 1, 20x4 amounted to P75,000, the: d.1. Retained earnings - Pill, January 1, 20x4. d.2. Retained earnings - Pill, December 31, 20X4 d.3. Consolidated retained earnings, December 31, 20x4 e. Investment in Sill on December 31, 20x4. 6. Reconcile the investment balance, December 31, 20x4 from cost model (No. 4e above) to equity method (No. 5e above). 6. Prepare the cost method and equity method journal entries of Large for each year. IV-Cost Model/Method Versus Equity Method When Pil Company. acquired 85% of Sill Corporation on January 1, 20x4, for P238.000, the imputed acquisition differential for allocated excess based on 100%) of P60,000 composed of P20,000 due to undervalued equipment (with 10-year life) and the balance was allocated entirely to goodwill. On December 31, 20x4, a goodwill impairment loss of P1,500 was recognized. Sill reported a net income of P40,000 and paid dividends of P9,000 in 20x4. Required: A. Assuming Pill reported a 20x4 separate net income of P55,000 and declared P5,000 dividends: 1. Using cost model, compute the following: a. Consolidated net income attributable to Pill's shareholders for 20x4. b. Consolidated net income attributable to non-controlling interest that would appear on the 20x4 consolidated income statement. C. Consolidated Net Income. d. If the retained earnings of Pill on the date of acquisition (i.e., January 1, 20x4) amounted to P75,000, the: 320 d.l. Retained earnings - Pill, January 1, 20x4. d.2. Retained earnings - Pill, December 31, 20x4 d.3. Consolidated retained earnings. December 31, 20x4 e. Investment in Sillon December 31, 20x4. 2. Using equity method, compute the following: a. Consolidated net income attributable to Pill's shareholders for 20x4. b. Consolidated net income attributable to non-controlling interest that would appear on the 20x4 consolidated income statement. C. Consolidated Net Income d. If the retained earnings of Pill on the date of acquisition (i.e., January 1, 20X4) amounted to P75,000, the: d.l. Retained earnings - Pill, January 1, 20x4. d.2. Retained earnings - Pill, December 31, 20x4 d.3. Consolidated retained earnings, December 31, 20x4 e. Investment in Sill on December 31, 20x4. 3. Reconcile the investment balance, December 31, 20x4 from cost model (No. le above) to equity method (No. 2e above). B. Assuming Pill declared P5.000 dividends for 20x4: 4. Using cost model and Pill reported a 20x4 net incom of P62,650, compute the following: a. Consolidated net income attributable to Pill's shareholders for 20x4. b. Consolidated net income attributable to non-controlling interest that would appear on the 20x4 consolidated income statement. C. Consolidated Net Income. d. If the retained earnings of Pill on the date of acquisition (i.e., January 1, 20x4] amounted to P75,000, the: d.1. Retained earnings - Pill, January 1, 20x4. d.2. Retained earnings - Pill, December 31, 20x4 d.3. Consolidated retained earnings, December 31, 20x4 e. Investment in Sill on December 31, 20x4. 5. Using equity method and Pill reported a 20x4 net income of P86,725, compute the following: a. Consolidated net income attributable to Pill's shareholders for 20x4. b. Consolidated net income attributable to non-controlling interest that would appear on the 20x4 consolidated income statement. C. Consolidated Net Income d. If the retained earnings of Pill on the date of acquisition (i.e., January 1, 20x4 amounted to P75,000, the: d.1. Retained earnings - Pill, January 1, 20x4. d.2. Retained earnings - Pill, December 31, 20X4 d.3. Consolidated retained earnings, December 31, 20x4 e. Investment in Sill on December 31, 20x4. 6. Reconcile the investment balance, December 31, 20x4 from cost model (No. 4e above) to equity method (No. 5e above)