On January 1, 2021, Payne Corporation purchased 70% of Shayne Corporation's P10 par common stock for P900,000. On this date, the carrying amount of Shayne's net assets was P1,000,000. The fair values of Shayne's identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net), which were P200,000 in excess of the carrying amount. For the year ended December 31, 2021, Shayne had net income of P150,000 and paid cash dividends totaling P90,000. Excess attributable to plant assets is amortized over 10 years. In the December 31, 2021, consolidated balance sheet, non-controlling interest should be reported at: On January 1, 2021, PP Company acquired an 80 percent investment in SS company. The acquisition cost was equal to PP's equity in SS's net assets at that date. On January 1, 2021, PP and SS had retained earnings of P500,000 and P100,000, respectively. During 2021, PP had net income of P200,000 which included its equity in SS's earnings, and declared dividends of P50,000; SS had net income of P40,000 and declared dividends of P20,000. There were no other intercompany transactions between the parent and subsidiary. On December 31, 2021, what should the consolidated retained earnings be? Lakas, Inc. starts a branch operation to sell more of its merchandise. Inventory costing P60,000 is shipped to this branch at a billed price of P90,000. During the initial year, the home office pays P17,000 in expenses for the branch. The branch sells 80 percent of the inventory that it received for P110,000 and remits P70,000 in cash to the home office. What is the correct Home Office account balance on the records of the branch? Closing entries have not been made. |