19.

Retained earnings, 12/31/013 - Sotto P 51,000

Dividends paid 5,000

Retained earnings, I2/31/013 before dividends P 56,000

Retained earnings, January 1, 2013 36,000

Net income --- Sotto P 20,000

Multiply by x40%

Investment income P 80000

20.

Investment account balance, 12/31/013 P 131,000

Dividends received (P5,000 x 40%) 2,000
Investment income (8,000)
price paid, January 1, 2013 P 125 000
21. None are reported as intercompany receivables in the consolidated statement of financial

position, because all of the intercompany receivables, payables and advances are eliminated.

22.

Stockholders' equity, 1/1/013 —Phil P16,000,000

Increase in earnings (P2,500,000 P900,000) 1,600,000
Consolidated stockholders' equity, 12131/013 P17,600,000
There is no non-controlling interest, because Phil acquires 100% of the stock of Sony.

23.

NCI at fair value (P207,000/75%) x 25% P 69,000

Price paid (parent) 207,000

Total P 276,000

Less book of identifiable net assets Sisa 250,000

Excess allocated to equipment P 26,000

24.

NCI, January 1, 2013 P 69,000

NCI in subsidiary dividends (2,000 (10,000) shares x P20) 25% NCI in

adjusted total comprehensive income --- Sisa:

Total comprehensive income P60,000

Amortization (P26,000/10) (2,600) Adjusted total

comprehensive P57,400 income

NCI 25% 14,350

NCI, December31, 2013 P 73,350

25.
Total comprehensive income Pinoy P 100,000
Dividend income (P40,000 x 75%) Total

comprehensive income from own operations Pinoy

Adjusted total comprehensive income --- Sisa

Consolidated total comprehensive income