Reference no: EM132744986

On January 1, 2016, Blueberry Company purchased 80% of the shares of Greenwood Corp at book value, which is the same as its fair value at the date of acquisition.

• The shareholders' equity of Greenwood Corporation on this date showed: Ordinary share Capital - P1,140,000 and Accumulated profits - P980,000. On April 30, 2016, Greenwood Corp acquired a used machinery for P168,000 from Blueberry Company that was being carried in the latter's books at P210,000. The asset still has a remaining useful life of 5 years.
• On the other hand, On August 31, 2015, Blueberry Company purchased land from Greenwood for P690,000. The original cost of this land was P550,000.
• Furthermore, there was an upstream sales of P112,000 in 2015 and P168,000 in 2016. The buying affiliate reported inventory on December 31, 2015 amounting to P70,000 of which 20% comes from the selling affiliate and inventory on December 31, 2016 amounting to P84,000 of which 30% comes from the selling affiliate.
• Blueberry Company uses a 30% mark-up on cost and Greenwood Corp uses a 25% mark-up on cost from their selling prices. Net income of Blueberry Company and Greenwood Corp for 2016 amounted to P720,000 and P310,000. Dividends paid totaled to P230,000 and P105,000 for Blueberry Company and Greenwood Corp., respectively.

Problem 1: Determine the non-controlling interest in net assets at December 31, 2016

a) 486,000
b) 436,552
c) 463,992
d) 484,992