Reference no: EM132882877

On January 1, 20x2, Pfieter Company purchased 80 percent of the outstanding shares of Sedrosky Company at a cost of P1,080,000. On that date, Sedrosky Company had P600,000 worth of ordinary shares and P750,000 worth of accumulated profits.

For 20x2, Sedrosky Company reported income of P270,000 and paid dividends of P90,000. All of the assets and liabilities of Sedrosky Company are at fair market value.

On December 31, 20x2, Pfieter Company sold equipment to Sedrosky Company for P112,500 that had a cost of P67,500. The equipment is expected to have a useful life of 10 years from this date. For the year 20x2, Pfieter Company reported income from its own operations in the amount of P300,000, which included the gain of P45,000 on equipment sold to Sedrosky Company.

REQUIREMENTS:

Problem 1. Prepare the elimination entries for 20x2

Problem 2. Compute for the following:

a. Amount to be shown as consolidated net income.

b. Net income attributable to owners of the parent.

c. Non-controlling Interest in Net Income of Subsidiary for 20x2.

d. Non-controlling Interest in Net Assets of Subsidiary as of December 31, 20x2.