Reference no: EM133077217
Questions -
Q1. The condensed statement of financial position accounts of Panda Inc. and Selina Inc. as of December 31, 2018 show:
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Panda Inc.
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Selina Inc.
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Assets
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P3,125,000
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P950,000
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Liabilities
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1,625,000
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250,000
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Ordinary Share Capital (par P80)
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1,250,000
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500,00
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Retained Earnings
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250,000
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200,000
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On January 1, 2019, Panda acquired for cash the 4,500 shares of Selina at P140 per share. In the consolidated statement of financial position prepared after acquisition, what is the combined assets (assuming the non-controlling interest is measured at its fair value)?
Q2. Basahin Company acquires 75% of Mabuti Company for P480,000 on January 1, 20x8. Mabuti reported capital stock of P325,000 and retained earnings of P275,000 on that day. An equipment with 5-year remaining life was undervalued by P50,000 and buildings with 10-year remaining life were overvalued by P20,000. Any excess consideration transferred over fair value was attributable to goodwill. Based on annual review, goodwill was impaired by P1,000. In 20x8, Mabuti net income is P120,000 and paid dividends of P50,000. How much is FULL GOODWILL in December 31, 20x8 consolidated financial statements?
Q3. Basahin2 Company acquires 75% of Mabuti2 Company for P480,000 on January 1, 20x8. Mabuti2 reported capital stock of P325,000 and retained earnings of P275,000 on that day. An equipment with 5-year remaining life was undervalued by P50,000 and buildings with 10-year remaining life were overvalued by P20,000. Any excess consideration transferred over fair value was attributable to goodwill. Based on annual review, goodwill was impaired by P1,000 in 20x8 and additional P1,200 in 20x9. Mabuti2 earns income and pays dividends as follows:
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20x8
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20x9
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Net income
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P120,000
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P130,000
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Dividends
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50,000
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60,000
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How much is the non-controlling interest under FULL GOODWILL method in December 31, 20x9 consolidated financial statements?