Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 2, 2012, D Corporation purchased 80% of the outstanding shares of C Company for P4,750,000. At that date, C had P4,000,000 of ordinary

On January 2, 2012, D Corporation purchased 80% of the outstanding shares of C Company for P4,750,000. At that date, C had P4,000,000 of ordinary shares outstanding and retained earnings of P1,600,000.

  • C's equipment with a remaining life of 5 years had a book value of P2,250,000 and a fair value of P2,630,000. C's remaining assets had book values equal to their fair values.
  • All intangibles except goodwill are expected to have remaining lives of 8 years.
  • The income and dividend figures for both D and C are as follows: Net income of D in 2012 is P900,000; 2013 is P1,100,000. Net income of C in 2012 is P340,000; 2013 is P510,000.
  • Dividends of D in 2012 is P220,000; 2013 is P390,000. Dividends of C in 2012 is P70,000; 2013 is P130,000.
  • D's retained earnings balance at the date of acquisition was P3,450,000
  • How much is the consolidated retained earnings attributable to controlling interest in 2013?

Group of answer choices

5,238,400

5,333,200

5,232,400

5,272,400

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Core Concepts Of Accounting

Authors: Leslie Breitner, Robert Anthony

11th Edition

0133125947, 9780133125948

More Books

Students also viewed these Accounting questions

Question

1. What does this mean for me?

Answered: 1 week ago