Reference no: EM133145961
Question - On January 2, 2021, Palawan Company acquired 80% of Samar Company's ordinary shares for P700,000. The book value and fair value of the net assets were equal except for inventory which was overstated by P37,500 and equipment which was undervalued by P50,000. The equipment has a remaining useful life of ten years. Non-controlling interest is measured at fair value. On the date of acquisition, stockholders' equity section of the two companies were as follows (see image below).
During the year, Palawan sold merchandise to Samar costing P500,000 for P625,000. Only 75% was sold during the year. On December 31, 2021, Samar Company reported net income of P131,250 and paid dividends of P45,000 to Palawan. Palawan reported earnings from its separate operations of P356,250 and paid dividends of P172,500. Goodwill had been impaired and should be reported at P30,000 on December 31, 2021.
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Palawan
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Samar
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Share Capital
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1,312,500
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300,000
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Retained Earnings
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1,950,000
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525,000
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Required -
How much is the Consolidated Net Income?
How much is the Net Income Attributable to Parent?
How much is the Net Income Attributable to NCI?
How much is the Non-Controlling Interest at December 31, 2021?