Reference no: EM132745597

Question - On January 1, 2020, Petron Company purchased 80% of the outstanding shares of Shell Company by paying P700,000. On this date, Shell had P300,000 Share Capital and P500,000 Retained Earnings. The net assets of Shell had a book value which approximated their fair value except an undervalued asset attributable to building amounting to P75,000 with remaining useful life of 25 years. On this date also, Petron had Share Capital of P1,000,000 and Retained Earnings of P800,000.

The net income and dividends for 2016 were as follows:

Petron Shell

Net Income 340,000 150,000

Dividends 100,000 50,000

Required -

a. Determine the Elimination Entries.

b. Determine the Consolidated Net Income.

c. Determine the Net Income Attributable to Parent.

d. Determine the Net Income Attributable to NCI.

e. Determine the NCI.

f. Determine the Consolidated Retained Earnings.