On January 1, 2014, Pilar Company acquired 60% interest in Santos Company for P2,400,000 cash. The stockholder’s equity of Santos at the time of acquisition is P3,400,000. Non-controlling interest is measured at its fair value. The excess of cost over the book value of interest acquired is allocated to the following assets: Inventories – P100,000 (sold in 2014) and Building – P200,000 (5-year remaining life). During 2014, Santos Company reported net income of P800,000 and paid dividends of P100,000. What is the amount of the non-controlling interest on January 1, 2014? A. P1,360,000 B. P1,600,000 C. P1,480,000 D. P960,000

On January 1, 2014, Pilar Company acquired 60% interest in Santos Company for P2,400,000 cash. The stockholder’s equity of Santos at the time of acquisition is P3,400,000. Non-controlling interest is measured at its fair value. The excess of cost over the book value of interest acquired is allocated to the following assets: Inventories – P100,000 (sold in 2014) and Building – P200,000 (5-year remaining life). During 2014, Santos Company reported net income of P800,000 and paid dividends of P100,000. What is the amount of the non-controlling interest on January 1, 2014? A. P1,360,000 B. P1,600,000 C. P1,480,000 D. P960,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8MC

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On January 1, 2014, Pilar Company acquired 60% interest in Santos Company for P2,400,000 cash. The stockholder’s equity of Santos at the time of acquisition is P3,400,000. Non-controlling interest is measured at its fair value. The excess of cost over the book value of interest acquired is allocated to the following assets: Inventories – P100,000 (sold in 2014) and Building – P200,000 (5-year remaining life). During 2014, Santos Company reported net income of P800,000 and paid dividends of P100,000. What is the non-controlling interest in net income?
On January 1, 2014, Pilar Company acquired 60% interest in Santos Company for P2,400,000 cash. The stockholder’s equity of Santos at the time of acquisition is P3,400,000. Non-controlling interest is measured at its fair value. The excess of cost over the book value of interest acquired is allocated to the following assets: Inventories – P100,000 (sold in 2014) and Building – P200,000 (5-year remaining life). During 2014, Santos Company reported net income of P800,000 and paid dividends of P100,000. What is the non-controlling interest in net assets of subsidiary on December 31, 2014? A. P1,824,000 B. P1,864,000 C. P1,704,000 D. P1,744,000
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