Reference no: EM133152962
Question - On January 3, 2022, P Company acquired 70% interest in S Company for P4,200,000. Consideration includes issuance of shares with fair value of P3,500,000 and cash for the balance. On this date, the equity of P and S Company are as follows:
|
P Company
|
S Company
|
|
Ordinary Share Capital
|
3,300,000
|
1,450,000
|
|
Accumulated Profits
|
5,450,000
|
2,800,000
|
Non-controlling interest is initially measured at fair value of P1,675,000. Fair value of the following assets of S Company exceeded their book values: Inventories, P150,000; Fixed assets (remaining life - 5 years), P600,000. All other assets and liabilities are fairly valued. Towards the end of the year, P sold to S merchandise costing P150,000 at 40% gross profit, 25% of these inventories was unsold as of balance sheet date. Also, P purchased inventory from S amounting to P250,000 which includes mark-up of 20% based on cost. P sold to outsider 30% of these inventories during 2022. Goodwill is impaired by P225,000. P Company reported income and declared dividend of P1,450,000 and P500,000, respectively. S Company has income and dividend declared of P800,000 and P200,000, respectively.
1. The consolidated net income at the Dec 31, 2022 FS amounted to:
2. How much is the NCI balance as of December 31, 2022, Consolidated FS?
3. How much is the consolidated Equity as of 12/31/2022?