A. How much is the net income attributable to non-controlling interest?B. How much is the net income attributable to the parent?C. What amount of non-controlling interest is presented in the consolidated statement of financial position on December 31, 2020? On January 2, 2020, Popsters Corporation purchased 80% of SG Corporation's ordinary shares for P648,000.P30,000 of the excess is attributable to goodwill and the balance to an equipment with an economic life of tenyears. Non-controlling interest is measured at its fair value on date of acquisition. On the date of acquisition,stockholders' equity of the two companies were as follows:Popsters1,050,000SGShare CapitalRetained Earnings240,0001,560,000420,000On December 31, 2020, Subsidiary reported net income of P105,000 and paid dividends of P36,000 to Parent.Parent reported earnings from its separate operations of P285,000 and paid dividends of P138,000. Goodwill hadbeen impaired and should be reported at P6,000 on December 31, 2020.

A) Net income attributable to non-controlling interest Subsidiary Income P105,000 The share of…

Answered: On January 2, 2020, Popsters…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

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A. How much is the net income attributable to non-controlling interest?
B. How much is the net income attributable to the parent?
C. What amount of non-controlling interest is presented in the consolidated statement of financial position on December 31, 2020?

On January 2, 2020, Popsters Corporation purchased 80% of SG Corporation's ordinary shares for P648,000.
P30,000 of the excess is attributable to goodwill and the balance to an equipment with an economic life of ten
years. Non-controlling interest is measured at its fair value on date of acquisition. On the date of acquisition,
stockholders' equity of the two companies were as follows:
Popsters
1,050,000
SG
Share Capital
Retained Earnings
240,000
1,560,000
420,000
On December 31, 2020, Subsidiary reported net income of P105,000 and paid dividends of P36,000 to Parent.
Parent reported earnings from its separate operations of P285,000 and paid dividends of P138,000. Goodwill had
been impaired and should be reported at P6,000 on December 31, 2020.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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