Question
The Nathan Company acquired all of the outstanding stock of Caleb Company on January 1, 2014 for P267,800 cash. Caleb had a book value of
The Nathan Company acquired all of the outstanding stock of Caleb Company on January 1, 2014 for P267,800 cash. Caleb had a book value of only P182,000 on that date. However, equipment (having an eight-year life) is undervalued by P52,000 on Calebs financial records. A building with a 20-year life was overvalued by P13,000. Subsequent to the acquisition, Caleb reported the following:
| Net Income | Dividends Paid |
2014 | P 65,000 | P 13,000 |
2015 | 78,000 | 52,000 |
2016 | 39,000 | 26,000 |
In accounting for this investment, Nathan has used the cost method. Selected accounts taken from the financial records of these two companies as of December 31, 2016, are as follows:
| Nathan Company | Caleb Company |
Revenues Operating | P403,000 | P135,200 |
Expenses | 257,400 | 96,200 |
Equipment (net) | 416,000 | 65,000 |
Building (net) | 286,000 | 88,400 |
Ordinary share | 377,000 | 65,000 |
Accumulated profits | 533,000 | 208,000 |
Required:
Determine the following account balances as of December 31, 2016.
- Net Income Attributable to Equity Holders of the Parent
- Non-controlling Interest in Net Income of Subsidiary
- Consolidated Net Income
- Consolidated Equipment (net)
- Consolidated Buildings (net)
- Consolidated Goodwill (net)
- Consolidated Ordinary Shares
- Consolidated Accumulated Profits
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