Scribd Logo
Upload

Welcome to Scribd!

  • 70 views

    Advanced Accounting - 2015 (Chapter 17) Multiple Choice Solution (Part K)

    Uploaded by

    John Carlos Doringo
    This document presents the consolidated net income calculation for companies P and S for the year 20x4. It shows the separate net incomes of P and S, along with adjustments for intercompany profits and non-controlling interests. The consolidated net income is calculated as the sum of the separate net incomes of P and S, after removing intercompany profits and non-controlling interests, equaling $486,250.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Advanced Accounting - 2015 (Chapter 17) Multiple Choice Solution (Part K)

    Uploaded by

    John Carlos Doringo
    70 views1 page
    This document presents the consolidated net income calculation for companies P and S for the year 20x4. It shows the separate net incomes of P and S, along with adjustments for intercompany profits and non-controlling interests. The consolidated net income is calculated as the sum of the separate net incomes of P and S, after removing intercompany profits and non-controlling interests, equaling $486,250.

    Original Title

    Advanced Accounting - 2015 [Chapter 17] Multiple Choice Solution (Part K)

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document presents the consolidated net income calculation for companies P and S for the year 20x4. It shows the separate net incomes of P and S, along with adjustments for intercompany profits and non-controlling interests. The consolidated net income is calculated as the sum of the separate net incomes of P and S, after removing intercompany profits and non-controlling interests, equaling $486,250.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    70 views1 page

    Advanced Accounting - 2015 (Chapter 17) Multiple Choice Solution (Part K)

    Uploaded by

    John Carlos Doringo
    This document presents the consolidated net income calculation for companies P and S for the year 20x4. It shows the separate net incomes of P and S, along with adjustments for intercompany profits and non-controlling interests. The consolidated net income is calculated as the sum of the separate net incomes of P and S, after removing intercompany profits and non-controlling interests, equaling $486,250.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Chapter 17

    Multiple Choice Problems


    67. c
    Consolidated Net Income for 20x4
    P Company’s net income from own/separate operations P360,000
    Realized profit in beginning inventory of S Company (downstream sales) 0
    Unrealized profit in ending inventory of S Company (downstream sales)… (_0)
    P Company’s realized net income from separate operations*…….….. P360,000
    S Company’s net income from own operations P135,000
    Realized profit in beginning inventory of P Company (upstream sales)
    [P105,000 x 20/120) 17,500
    Unrealized profit in ending inventory of P Company (upstream sales)
    [P157,500 x 20/120) ( 26,250 )
    S Company’s realized net income from separate operations*…….….. P126,250 126,250
    Total P 486,250
    Less: Amortization of allocated excess…………………… _0
    Consolidated Net Income for 20x4 P486,250
    Less: Non-controlling Interest in Net Income* * 1,610
    Controlling Interest in Consolidated Net Income or Profit attributable to
    equity holders of parent – 20x4………….. P 51,490
    *that has been realized in transactions with third parties.
    Or, alternatively
    Consolidated Net Income for 20x4
    P Company’s net income from own/separate operations P360,000
    Realized profit in beginning inventory of S Company (downstream sales) 0
    Unrealized profit in ending inventory of S Company (downstream sales)… (_0)
    P Company’s realized net income from separate operations*…….….. P360,000
    S Company’s net income from own operations ( P135,000
    Realized profit in beginning inventory of P Company (upstream sales)
    [P105,000 x 20/120) 17,500
    Unrealized profit in ending inventory of P Company (upstream sales)
    [P157,500 x 20/120) ( 26,250 )
    S Company’s realized net income from separate operations*…….….. P126,250 126,250
    Total P 486,250
    Less: Non-controlling Interest in Net Income* * P 37,875
    Amortization of allocated excess…………………… 0 37,875
    Controlling Interest in Consolidated Net Income or Profit attributable to
    equity holders of parent………….. P 448,375
    Add: Non-controlling Interest in Net Income (NCINI) _37,875
    Consolidated Net Income for 20x4 P 486,250
    *that has been realized in transactions with third parties.

    **Non-controlling Interest in Net Income (NCINI) for 20x4


    S Company’s net income of Subsidiary Company from its own operations
    (Reported net income of S Company) P 135,000
    Realized profit in beginning inventory of P Company (upstream sales) 17,500
    Unrealized profit in ending inventory of P Company (upstream sales) ( 26,250)
    S Company’s realized net income from separate operations……… P 126,250
    Less: Amortization of allocated excess 0
    P126,250
    Multiplied by: Non-controlling interest %.......... 30%
    Non-controlling Interest in Net Income (NCINI) – partial goodwill P 37,875
    Less: NCI on goodwill impairment loss on full goodwill 0
    Non-controlling Interest in Net Income (NCINI) – full goodwill P 37,875
    68. a – refer to No. 67 for computation.

    You might also like