Question
B Company acquired a 75% interest in Y Company in 2018.B reported net income of P720,000 in 2020 while Y reported net income of P325,000
B Company acquired a 75% interest in Y Company in 2018.B reported net income of P720,000 in 2020 while Y reported net income of P325,000 in 2020.During 2019, there was an upstream sales of merchandise for P76,000 at a cost of P52,000.Two-fifths of the merchandise were later resold by the buying affiliate to outsiders for P35,000 during 2020.In 2020, B purchased merchandise from Y for P88,000 at a profit of P32,000.One-fourth of the merchandise was resold by the buying affiliate to outsiders for P27,000 during 2020
The following questions pertain to this problem:
Compute the non-controlling interest in net income in 2020.
Compute the consolidated net income in 2020
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