Question
ABC Corporation acquired 80% of the outstanding shares of XYZ Company on June 1, 2023 for P3,517,500. XYZ Company's stockholder's equity components at the end
ABC Corporation acquired 80% of the outstanding shares of XYZ Company on June 1, 2023 for P3,517,500. XYZ Company's stockholder's equity components at the end of this year are as follows: Ordinary shares, P100 par, P1,500,000, Share premium P675,000 and Retained Earnings P1,335,000, Non-controlling interest is measured at fair value and the fair value is P705,000. The assets of XYZ were fairly valued, except for inventories, which are overstated by P66,000, and equipment, which was understated by P90,000. Remaining useful life of equipment is 4 years. Stockholder's equity of ABC on January 1,2023 is composed of Ordinary Shares P4,500,000, Share premium P1,050,000, Retained Earnings P3,150,000. Goodwill, if any, should be written down by P85,350 at year-end.Net income for the first year of parent is P450,000 and the net income of subsidiary from the date of acquisition is P255,000. Dividends declared at the end of the year amounted to P120,000 and P90,000. During the year, there was no issuance of new ordinary shares. 30, What is the value of NCI at the date of acquisition? 1. HoW much is the total goodwill? 2. HOW much is the total consolidated net income? 3. HOW much is the income attributable to parent? 4 How much iS the income attributable to NCI? 5. How much is the consolidated equity on December 31, 2023?
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