Question
On January 1, 2021, Antonio Company purchased 80 percent of the outstanding share capital of Tony Company at a cost of P800,000. On that date,
On January 1, 2021, Antonio Company purchased 80 percent of the outstanding share capital of Tony Company at a cost of P800,000. On that date, Tony Company had P500,000 of ordinary share capital and P500,000 of retained earnings. For 2021, Tony Company reported income of P200,000 and paid dividends of P80,000. All the assets and liabilities of Tony Company are at fair market value.
1. How much is the income to be recognized by the parent company for the year 2021?
2. What is the balance of the investment account as of December 31, 2021?
3. What is the non-controlling interest balance as of December 31, 2021 consolidated statement of financial position?
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