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Show the consolidated net income

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Reference no: EM132945047

Question - On January 1, 2019, Satellite, INC. a 90% owned subsidiary of PORT COMPANY transferred equipment to its parent in exchange for P115,200 cash. At the date of transfer, the subsidiary's record carried the equipment at a cost of P162,816 less accumulated depreciation of P69,120. The equipment has an estimated remaining life of 7 years. The subsidiary reported net income for 2019 and 2020 of P 202,752 and P302,592, respectively. The parent company reported income of P 337,920 (including dividend income of P 69,120) and P453,120 (including dividend income of 69,120) for 2019 and 2020, respectively.

Requirements -

1. Calculate Port Company's investment income from Satellite Company in 2019 and in 2020.

2. Determine non-controlling interest in the net income of the subsidiary for 2019 and for 2020.

3. Show the consolidated net income for 2019 and 2020. Allocate each to Controlling and Non-controlling interests.

4. Elimination entries for 2019 and for 2020.

Reference no: EM132945047

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