What is the non-controlling interest on December 31, 20×1? Transcribed Image Text: On January 1, 20×0, P Company purchased 80 percent of the outstanding shares of S Company by paying P650,000.

Excerpt
sold macnery with a book value of P40,000 to S Company for P75,000. The gain on the sale is also included in the net income of P company indicated above. The macnery is expected to last for ten (10) years from the date of sale.

What is the non-controlling interest on December 31, 20×1? Transcribed Image Text: On January 1, 20×0, P Company purchased 80 percent of the outstanding shares
of S Company by paying P650,000. On that date, S Company P300,000 capital
stock and P500,000 retained earnings. An undervalued asset attributable to
building amounting to P75,000 with a remaining life of 25 years. All other assets
and liabilities of S Company had book value approximated their fair market
value.
On January 1, 20×1, P’s common stock and retained earnings amounted to
P1,000,000 and P800,000, respectively, wle S Company’s retained earnings is
P600,000.
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The 20×1 net income and dividends using cost (or initial value) method that was
as follows;
Net Income
Dividends
P Company
P340,000
P100,000
S Company
P150,000
P50,000
On April 1, 20×1, S Company sold equipment with book value of P30,000 to P
Company for 60,000. The gain on the sale is included in the net income of S
Company indicated above. The equipment is expected to have to have a
remaining useful life of five years from the date of sale.
On September 30, 20×1, P Company sold macnery with a book value of
P40,000 to S Company for P75,000. The gain on the sale is also included in the
net income of P company indicated above. The macnery is expected to last for
ten (10) years from the date of sale.

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