Reference no: EM132762018
Questions - On January 2, 2018, P Company purchased 80% of S Company's ordinary shares for P3,240,000. The P150,000 of the total excess (excess of FV of consideration and NCI over the book value of identifiable assets acquired) is attributable to goodwill and the balance to a depreciable asset with remaining useful life of 10 years. NCI is at its FV at the date of acquisition. On the date of acquisition, shareholders' equity of both companies are as follows:
Share Capital
P - 5,250,000
S - 1,200,000
Retained Earnings
P - 7,800,000
S - 2,100,000
On December 31, 2018, S Company had retained earnings of P2,400,000 after paying dividends of P180,000 to the acquirer. P Company reported earnings from its own operation of P1,425,000 and paid dividends of P690,000. Goodwill has been impaired and should be reported at P30,000.
Required - Determine the following:
a. Consolidated Net Income
b. Consolidated Retained Earnings
c. NCI, beginning
d. NCI, end