Adjustment to the net income of the subsidiary

Reference no: EM132970285

P Corporation acquired an interest on S Company on January 1, 2021 for P9,000,000 when S Company's stockholders' equity consisted of P2,500,000 ordinary share capital, P3,000,000 share premium and P2,000,000 positive retained earnings. After the acquisition, the interest of the non-controlling owners is determined to be 40%.

On the date of acquisition, the fair value of S Company's assets is the same as their fair values except for, (1) the inventories (all sold in the year of acquisition), whose carrying value is more than its fair value by P60,000, and (2) depreciable plant assets (with 5 years remaining useful life), whose fair value is more than the carrying value by P100,000.

The value of the NCI is to be measured at fair value. During 2021, P Corporation and S Company reported net income of P280,000 and P150,000. During 2021, P Corporation received a dividend of P90,000 from the subsidiary.

Question:

-Adjustment to the Net income of the subsidiary related to undervaluation of depreciation expense for 2021 is (Type the absolute value of the amount).
-Share of Parent in the Net income of the Subsidiary for 2021 is
-Dividends declared by the subsidiary to the non-controlling interest for 2021 is

Reference no: EM132970285

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