Pluto Corporation purchased 70% of Mercury Company's ownership on January 1, 2016 and paid P462,000. The NCI is measured at a fair value of P182,000.
Pluto Corporation purchased 70% of Mercury Company's ownership on January 1, 2016 and paid P462,000. The NCI is measured at a fair value of P182,000. Mercury Company's book value of net assets is P560,000. The net assets are fairly valued except for the building and equipment which were undervalued by P26,000 and P14,000, respectively. The building has remaining economic life of 8 years while the equipment has 4 years. The goodwill should be impaired and must be reported at P33,000 on December 31, 2016. The companies reported the following for 2017: Net income Dividends paid Pluto Corporation 254,000 80.000 Mercury Company 50,000 20,000 How much is the share of the parent in the impairment of goodwill? 11.000 7.700 O 10.500 18:900 How much is the consolidated net income on December 31. 2016? 256,250 286.250 259.775 272.250 How much is the parent's share in consolidated net income on December 31, 2016? 251.375 273,775 259.775 262:575
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