Question
Popo Inc. owns an 80% interest in Sisa Inc. and at December 31,2022, Popo's investment in Sisa under the cost method was equal to 80%
Popo Inc. owns an 80% interest in Sisa Inc. and at December 31,2022, Popo's investment in Sisa under the cost method was equal to 80% of Sisa's stockholders' equity. During 2023, Sisa sells merchandise to Popo for P100,000 at a gross profit to Sisa of P20,000. At December 31,2023, half of this merchandise is included in Popo's inventory. Separate incomes for Popo and Sisa for 2023 are summarized as follows:
| Popo | Sisa | |
| Sales | 500,000.00 | 300,000.00 |
| Cost of Sales | - 250,000.00 | - 200,000.00 |
| Operating Expenses | - 125,000.00 | - 40,000.00 |
| CI from own operations | 125,000.00 | 60,000.00 |
In the consolidated statement of CI for 2023, NCI in CI of subsidiary is:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
NCI in CI of Subsidiary for Consolidated Statement We need to calculate the NonControlling Interest ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
