P Corporation acquired an 80% interest in S Company on January 1, 2020 for P425,000. On this date, the share capital and retained earnings of two companies were as follows: P Corporation S Company P175,000 Share Capital P530,000 Retained Earnings 380,000 35,000 The assets and liabilities of S Company were stated at their fair values when Pacquired its 80% interest and the fair value method was used to initially measure the NCI. Net income and dividends for 2020 for the affililated companies were: P Corporation S Company Net Income P105,000 P31,500 Dividends Declared 63,000 17,500 End of the year valuation indicates P2,400 impairment in goodwill (partial). 1. Consolidated retained earnings at December : 31, 2020. 2. Goodwill in the consolidated balance sheet at December 31, 2020.
P Corporation acquired an 80% interest in S Company on January 1, 2020 for P425,000. On this date, the share capital and retained earnings of two companies were as follows: P Corporation S Company P175,000 Share Capital P530,000 Retained Earnings 380,000 35,000 The assets and liabilities of S Company were stated at their fair values when Pacquired its 80% interest and the fair value method was used to initially measure the NCI. Net income and dividends for 2020 for the affililated companies were: P Corporation S Company Net Income P105,000 P31,500 Dividends Declared 63,000 17,500 End of the year valuation indicates P2,400 impairment in goodwill (partial). 1. Consolidated retained earnings at December : 31, 2020. 2. Goodwill in the consolidated balance sheet at December 31, 2020.
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
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
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