please help me answer the following with solutions:
PROBLEM 1:
1.The investment in subsidiary account on December 31, 20x1:
2.The Dividend income/investment income for 20x1:
3.The Non-controlling interest in Net Income for 20x1:
4.The Profit attributable to equity holders of parent (Parent's Interests/Controlling Interest in Profit) for
20x1:
5.The Consolidated/Group Net Income for 20x1:
6.The non-controlling interest on December 31, 20x1
7.The non-controlling interest (in net assets) on December 31, 20x2, assuming that the net income and
dividends of subsidiary amounted to P200,000 and P70,000, respectively:
8.The controlling (parent's) interest - retained earnings or the consolidated retained earnings on December
31, 20x1:
9.The consolidated stockholders' equity on December 31, 20x1:
PROBLEM 2 (MULTIPLE CHOICE) 1. Scroll Inc., a wholly owned subsidiary of Pirn, Inc. began operations on January 1, 20x2. The following information is from the condensed 20x2 income statements of Pirn and Scroll: Pirn Scroll Sales P500,000 P300,000 Cost of goods sold (350,00.0) (270,000) Gross profit P150,000 P30,000 Depreciation (40,000) (10,000) Other expenses Income from operations Gain on sale of equipment to Scroll G 50,090 P 5,000 12,000 Income before taxes P62.000 P 5.000 Equipment purchased by Scroll from Pirn for P36,000 on January 1. 20x2, is depreciated using the straight- line method over four years. What amount should be reported as depreciation expense in Pim's consolidated income statements? A. 50,000 C. 44,000 B. 47.000 D. 41.000 2. Upper Company holds 60 percent of Lower Company's voting shares. During the preparation of consolidated financial statements for 20x4, the following eliminating entry was made: Retained earnings, January 10,000 Land 10,000 Which of the following statements is correct? A. Upper Company purchased land from Lower Company during 20x4, B. Upper Company purchase land from Lower Company before January 1, 20x4. C. Lower Company purchased land from Upper Company during 20x4. D. Lower Company purchased land from Upper Company before January 1, 20x4. 3. Middle Company holds 60 percent of Bottom Corporation's voting shares, Bottom has developed a new type of production equipment that appears to be quite marketable, It spent P40,000 in developing the equipment; however, Middle agreed to purchase the production rights for the machine for P100,000, If the intercompany sale occurred on January 1. 20%2, and the production rights are expected to have value for five years, at what amount should the RIGHTS be reported in the consolidated balance sheet for December 31. 20x27 AO C. 80.000 B. 32.000 UIS D. 100,000 Questions 4 through 7 are based on the following information: On January 1. 20%2, Gold Company purchased a computer with an expected economic life of five years, On January 1. 20x4. Gold sold the computer to TLK Corporation and recorded the following entry: Cash 39,000 Accumulated Depreciation 16.000 Computer Equipment 40.000 Gain on sale of equipment 15,000 TLK Corporation holds 60 percent of Gold's voting shares. Gold reported net income of P45.000, and TLK reported income from its own operations of P85.000 for 20x4. There is no change in the estimated life of the equipment as a result of the inter-corporate transfer. 4. In the preparation of the 20x4 consolidated income statement, depreciation expense will be A. Debited for 5,0100 in eliminating entries B. Credited for 5,000 in eliminating entries C. Debited for 13,000 in eliminating entries D. Credited for 13,000 in eliminating entries 5. In the preparation of the 20x4 consolidated balance sheet, the computer equipment will be: A. Debited for 1.000 C. Credited for 24.000 B. Debited for 15,000 D. Debited for 40,000 6. The income assigned to the non-controlling interest in the 20x4 consolidated income statement will be: A. 12,000 C. 18,000 B. 14.000 D. 52,090 7. The consolidated net income for 20x4 will bet A. 106,000 C. 120,000 B.112,000 D. 130,000PROBLEM 3 On January 1, 20x2, Pieter Company purchased 80 percent of the outstanding shares of Sedrosky Company at a cost of P1,080,000. On that date, Sedrosky Company had P600,000 worth of ordinary shares and P750,000 worth of accumulated profits. For 20x2, Sedrosky Company reported income of P270,000 and paid dividends of P90,000. All of the assets and liabilities of Sedrosky Company are at fair market value. On December 31, 20x2, Pieter Company sold equipment to Sedrosky Company for P1 12,500 that had a cost of P67,500. The equipment is expected to have a useful life of 10 years from this date. For the year 20x2, Pieter Company reported income from its own operations in the amount of P300,000, which included the gain of P45,000 on equipment sold to Sedrosky Company. REQUIREMENTS: 1. Prepare the elimination entries for 20x2 2. Compute for the following: a. Amount to be shown as consolidated net income. b. Net income attributable to owners of the parent. c. Non-controlling Interest in Net Income of Subsidiary for 20x2. d. Non-controlling Interest in Net Assets of Subsidiary as of December 31, 20x2.PROBLEM 1 On January 1. 20x0, P Company purchased 80 percent of the outstanding shares of S Company by paying P650,000. On that date, S Company P300,000 capital stock and P500,000 retained earnings. An undervalued asset attributable to building amounting to P75,000 with a remaining life of 25 years. All other assets and liabilities of S Company had book value approximated their fair market value. On January 1, 20x1 P's common stock and retained earnings amounted to P1,000,000 and P800,000, respectively, while S Company's retained earnings is P600,000. The 20x1 net income and dividends using cost (or initial value) method that was as follows; Net Income Dividends P Company P340,000 P100,000 S Company P150,000 P50,000 On April 1, 20x1, S Company sold equipment with book value of P30,000 to P Company for 60,000. The gain on the sale is included in the net income of S Company indicated above. The equipment is expected to have to have a remaining useful life of five years from the date of sale. On September 30, 20x1, P Company sold machinery with a book value of P40,000 to S Company for P75,000. The gain on the sale is also included in the net income of P company indicated above. The machinery is expected to last for ten (10) years from the date of sale
