Reference no: EM132709312
Problem -
Q1. On January 2, 2012, D Corporation purchased 80% of the outstanding shares of C Company for 34,750,000. At that date, C had P4,000,000 of ordinary shares outstanding and retained earnings of P1,600,000.
C's equipment with a remaining life of 5 years had a book value of P2,250,000 and a fair value of P2,630,000. C's remaining assets had book values equal to their fair values.
All intangibles except goodwill are expected to have remaining lives of 8 years.
The income and dividend ?gures for both D and C are as follows: Net income of D in 2012 is P900,000; 2013 is P1,100,000. Net income of C in 2012 is P340,000; 2013 is P510,000.
Dividends of D in 2012 is P220,000; 2013 is P390000. Dividends of C in 2012 is P70,000; 2013 is P130,000.
D's retained earnings balance at the date of acquisition was P3,450,000.
Required -
1. How much is the consolidated retained earnings attributable to controlling interest in 2013?
2. How much is the consolidated pro?t in 2013?
3. How much is the non-controlling interest in net assets in 2013?
Q2. On January 1, 2012, P Corporation purchased 80% of S Company's outstanding stock for P620,000. At that date, all of S Company's assets and liabilities had market values approximately equal to their book values and no goodwill was included in the purchase price. The following information was available for 2012: Income from own operations of P Corporation, P150,000; Operating loss of 8 Company, P20,000. Dividends paid in 2012 by P Corporation, P75,000; by 8 Company to P Corporation, P12,000.
On July 1, 2012, there was a downstream sale of equipment at a gain of P25,000. The equipment is expected to have a remaining useful life of 10 years from the date of sale. Also, on January 1, 2012, there was an upstream sale of furniture at a loss of P1500. The furniture is expected to have a useful life of ?ve years from the date of sale. Non- controlling interest is measured at fair market value.
Required - How much is the consolidated net income attributable to parent shareholders' equity?