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What will be the income assigned to controlling interest

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Question - Sonny Company sells all its output at 25 percent above cost to Panasonic Corporation. Panasonic purchases all its inventory from Sonny. The income reported by the companies over the past three years are as follows:

2017: Net Income of Sonny amounted to P150,000 while operating income of Panasonic amounted to P225,000

2018: Net Income of Sonny amounted to P125,000 while operating income of Panasonic amounted to P360,000

2019: Net Income of Sonny amounted to P240,000 while operating income of Panasonic amounted to P430,000

Sonny Company sold inventory for P300,000, P262,500 and P337,500 in the years 2017, 2018, and 2019 respectively. Panasonic Company reported ending inventory of P110,000, P157,500 and P160,000 for 2017, 2018, and 2019 respectively. Panasonic acquired 70 percent of the ownership of Sonny on January 1, 2017, at underlying book value. The fair value of the non-controlling interest at the date of acquisition was equal to 30 percent of the book value of Sonny Company.

Required -

Based on the information given above, what will be the consolidated net income for 2017?

Based on the information given above, what will be the consolidated net income for 2018?

Based on the information given above, what will be the income assigned to controlling interest for 2019?

Reference no: EM132954707

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