Subsequent to Date of Acquisition

SHOW YOUR SOLUTION.

1. How much is the amount of goodwill (income from acquisition) to be presented in the 2015 consolidated financial statement? a. P 40,000 c. (P 60,000) b. P 50,000 d. (P 80,000)

2. How much is the Non-Controlling Interest in the Net Income of Subsidiary in 2015? a. P 48,000 c. P 60,000 b. P 50,000 d. P 72,000

3. How much is the consolidated net income in 2015? a. P 387,500 c. P447,500 b. P 422,500 d. P 482,500

4. How much of the consolidated net income is attributable to Non-Controlling Interest in 2015? a. P 48,000 c. P 50,500 b. P 50,000 d. P 60,000

5. How much of the consolidated net income is attributable to Controlling Interest in 2015? a. P 339,500 c. P 399,500 b. P 374,500 d. P 434,500

6. How much is the amount of NCI in Net assets of the subsidiary as of December 31, 2015? a. P 253,000 c. P273,000 b. P 257,500 d. P290,500

7. How much is the consolidated retained earnings in 2015? a. P1,084,500 c. P1,144,500 b. P 1,119,500 d. P1,179,500

8. How much is the consolidated shareholders equity in 2015? a. P 2,292,500 c. P2,372,500 b. P 2,352,500 d. P2,502,000

9. How much is the consolidated liabilities in 2015? a. P 1,290,000 c. P1,340,000 b. P 1,315,000 d. P1,365,000

10. How much is the consolidated assets in 2015? a. P 3,322,000 c. P3,662,500 b. P 3,612,000 d. P3,687,500

Problem G: The following Statement of Financial Position were prepared for Popoy and Sasha Company on January 1, 2015 just before they entered into business combination: POPOY Company SASHA Company Book Value Fair Value Book Value Fair Value Cash and Receivables, 900,000 900.000 160,000 160.000 Inventory 600,000 800,000 100,000 130,000 Building (5 year life) 1,125,000 1,400,000 300,000 400,000 Equipment (5 year life) 300,000 400,000 250,000 200,000 Accounts Payable 450,000 400,000 50,000 50,000 Bond's payable 750000 750,000 40,000 40,000 Common Stocks P 20 par value 750,000 P 10 par value 200,000 Additional Paid in Capital 150,000 50,000 Retained Earnings 825,000 470,000 On the same day, Popoy purchased 70 percent common shares outstanding of SaSha for P 500,000. On December 31, 2015, Popoy Company and Sasha Company reported their separate net income as follows: Popoy Company Sasha Company P297,500 P200,000 Additional Information: The fair value of Non-controlling interest (30%) is assessed at P 220,000. Popoy declared dividends amounting to P 80,000 while Sasha Declared and paid dividends of P 50,000