80% COST MODEL (Partial Goodwill)
Worksheet for Consolidated Financial Statements
December 31, 2024
Income Statement Parent Corp Son Corp. Debit Credit Consolidated
Sales 450,000.00 300,000.00 750,000.00
Dividend Income 32,000.00 32,000 5 0.00
Total Revenue 482,000.00 300,000.00 750,000.00
Cost of Goods Sold 180,000.00 160,000.00 340,000.00
Depreciation expense 50,000.00 20,000.00 5,000 4 75,000.00
Interest expense 1,000 4 1,000.00
Goodwill impairment loss 0.00
Other expenses 60,000.00 45,000.00 105,000.00
Total Cost and Expenses 290,000.00 225,000.00 521,000.00
Net Income 192,000.00 75,000.00 229,000.00
NCI in Net Income - Son 13,800 6 (13,800.00)
Net Income to Retained Earnings 192,000.00 75,000.00 215,200.00
Statement of Retained Earnings
Retained earnings, 1/1
Parent Corporation 404,000.00 11,300 4 16,000 1 408,700
Son Corporation 120,000.00 120,000 2 -
Net Income from above 192,000.00 75,000.00 215,200
Total 596,000.00 195,000.00 623,900
Dividends paid
Parent Corporation 60,000.00 60,000
Son Corporation 40,000.00 40,000 5 -
Retained earnings, 12/31 to Balance Sheet 536,000.00 155,000.00 563,900
Balance Sheet
Cash 221,000.00 85,000.00 306,000
Accounts receivable 150,000.00 80,000.00 230,000
Inventory 180,000.00 90,000.00 5,000 3 5,000 4 270,000
Land 175,000.00 40,000.00 6,000 3 221,000
Equipment 200,000.00 150,000.00 350,000
Buildings 600,000.00 450,000.00 180,000 3 870,000
Discount on Bonds Payable 4,000 3 2,000 4 2,000
Goodwill 10,000 3 2,500 4 7,500
Investment in Son Corporation 310,000.00 16,000 1 256,000 2 -
70,000 3
Total 1,836,000.00 895,000.00 2,256,500
Accumulated depreciation - equipment 125,000.00 85,000.00 80,000 3 20,000 4 150,000
Accumulated depreciation - buildings 375,000.00 255,000.00 160,000 3 460,000
10,000 4
Accounts payable 100,000.00 100,000.00 200,000
Bonds Payable 200,000.00 100,000.00 300,000
Ordinary shares, P10 par 500,000.00 200,000.00 200,000 2 500,000
Retained earnings, from above 536,000.00 155,000.00 563,900
Non-Controlling Interest 8,000 5 64,000 2
2,200 3 15,000 3
13,800 3 82,600
Total 1,836,000.00 895,000.00 684,300 684,300 2,256,500
Partial Goodwill
Consideration transferred 310,000.00
Less: BV of shareholders' equity of Son:
Ordinary shares 200,000 X 80%= 160,000.00
Retained earnings 100000 X 80%= 80,000.00 240,000.00
Allocated excess 70,000.00
Less: Over/undervaluation of assets and liabilities assumed:
Increase in inventory (P5,000 X 80%) 4,000.00
Increase in land (P6,000 X 80%) 4,800.00
Increase in equipment (P80,000 X 80%) 64,000.00
Decrease in building (P20,000 X 80%) - 16,000.00
Decrease in bonds payable (P4,000 X 80%) 3,200.00 60,000.00
Goodwill 10,000.00
Amortization of Excess" Over/Under Life 1st Year 2nd Year
Inventory 5,000.00 1 5,000.00
Equipment (net) 80,000.00 8 10,000.00 10,000.00
Buildongs (net) - 20,000.00 4 - 5,000.00 - 5,000.00
Bonds payable 4,000.00 4 1,000.00 1,000.00
69,000.00 11,000.00 6,000.00
2023 2024
Net Income of Son 50,000.00 75,000.00
Amortization of allocated excess 11,000.00 6,000.00
Balance 39,000.00 69,000.00
NCI 20% 20%
NCI in Net Income 7,800.00 13,800.00
Consideration transferred 310,000.00
FV of NCI 77,500.00
FV of Subsidiary 387,500.00
Less: BV of shareholders' equity of Son 300,000.00
Allocated Excess 87,500.00
Less: Over/undervaluation of assets and liabilities assumed:
Inventory 5,000.00
Land 6,000.00
Equipment (net) 80,000.00
Building (net) - 20,000.00
Bonds payable 4,000.00 75,000.00
Goodwill 12,500.00
Parent (80%) 10,000.00
NCI (20%) 2,500.00
