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Multiple Choices - Computational
Multiple Choices - Computational
16-2: d, consolidated CI will decrease by P6,000 due to amortization of the allocated excess
(P60,000 / 10 years).
16-4: c
16-5: a
16-6: a
Puno’s CI P 145,000
Dividend income (P40,000 x 90%) ( 36,000)
Puno’s CI from own operations 109,000
Salas’ CI from own operations 120,000
Consolidated CI P 229,000
16-7: b
16-8: a
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Investment in Son, Jan. 1 P310,000 P396,200MULTIPLE
CHOICES - COMPUTATIONAL
16-2: d, consolidated CI will decrease by P6,000 due to amortization of the allocated excess
(P60,000 / 10 years).
16-4: c
16-5: a
16-6: a
Puno’s CI P 145,000
Dividend income (P40,000 x 90%) ( 36,000)
Puno’s CI from own operations 109,000
Salas’ CI from own operations 120,000
Consolidated CI P 229,000
16-7: b
16-8: a
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2011 2012 2013
Investment in Son, Jan. 1 P310,000 P396,200MULTIPLE
CHOICES - COMPUTATIONAL
16-2: d, consolidated CI will decrease by P6,000 due to amortization of the allocated excess
(P60,000 / 10 years).
16-4: c
16-5: a
16-6: a
Puno’s CI P 145,000
Dividend income (P40,000 x 90%) ( 36,000)
Puno’s CI from own operations 109,000
Salas’ CI from own operations 120,000
Consolidated CI P 229,000
16-7: b
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16-8: a
16-2: d, consolidated CI will decrease by P6,000 due to amortization of the allocated excess
(P60,000 / 10 years).
16-4: c
16-5: a
16-6: a
Puno’s CI P 145,000
Dividend income (P40,000 x 90%) ( 36,000)
Puno’s CI from own operations 109,000
Salas’ CI from own operations 120,000
Consolidated CI P 229,000
16-7: b
111
Current depreciation (P900,000/10) 90,000 P 450,000
18-6: a
18-7: a
18-8: c
CI – Po P200,000
Unrealized gain, Dec. 31 – DS (30,000)
CI from own operation – Po 270,000
CI of So 180,000
Consolidated CI, Dec. 31, 2013 P350,000
Attributable to NCI (P180,000 x 20%) (36,000)
Attributable to parent P314,000
18-9: b
18-10: c
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18-10, Continued:
Non-controlling interest (NCI)
NCI, January 1, 2013 [(P1,240,000/80%) x 20%) P 310,000
NCI share in dividends paid by subsidiary (P30,000 x 20%) ( 6,000)
NCI in adjusted CI (loss) of subsidiary ( 5,600)
NCI, December 31, 2013 P 298,400
18-11: a
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18-12: a
18-13: d
2012 2013
CI from operations – Parent P100,000 P120,000
Adjusted CI of Sub:
CI P 60,000 P 75,000
Unrealized gain – Upstream ( 9,000) -
Realized gain: 2010 (P9,000/3) x ¼ 750
2011 (P9,000/3) - 3,000
Adjusted CI P 51,750 P 78,000
Consolidated CI P151,750 P198,000
Attributable to NCI (10,350) (15,600)
Attributable to parent P141,400 P182,400
18-14: d
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18-15: a
PROBLEMS
Problem 18-1
Computation of the missing amounts in the working paper eliminations for P Corporation and S
Company:
(1) P640 (P3,200 x 20%)
(2) P2,560 (P3,200 x 80%)
(3) P1,600 (P800 x 2)
(4) P320 (P1,600 x 20%)
(5) P1,280 (P1,600 x 80%)
(6) P3,200 (P800 x 4)
Problem 18-2
115
c. Non-controlling interest (NCI):
NCI, January 1, 2013 [(P720,000/80%) x 20%] P180,000
NCI in dividends paid by subsidiary (P60,000 x 20%) (12,000)
NCI in CI of subsidiary (P180,000 x 20%) 36,000
NCI, December 31, 2013 P204,000
Problem 18-3
Schedule 1:
Selling price – Dec. 28, 2013 P36,000
Book value (P65,000 ÷ 5) x3 26,000
Gain on sale 10,000
Unrealized gain (P25,000 – P15,000) 10,000
Total gain P20,000
Problem 18-4
116
NCI in adjusted CI of subsidiary 24,900
NCI, December 31, 2013 P214,900
Problem 18-5
Texas Company and Subsidiary
Consolidated Statement of Comprehensive Income
Year Ended December 31, 2013
Sales P1,500,000
Cost of goods sold 650,000
Gross profit 850,000
Expenses (P200,000 + P100,000 – P8,000 ) 292,000
Consolidated comprehensive income P 558,000
Attributable to NCI (P150,000 x 25%) 37,500
Attributable to parent P 520,500
Problem 18-6
a. Working Paper Elimination Entries – Dec. 31, 2013
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(7) Accounts payable 7,000
Accounts receivable 7,000
To eliminate intercompany payables and receivables.
Statement of FP
Cash and receivables 113,000 35,000 (7) 7,000 141,000
Inventory 260,000 90,000 350,000
Land 80,000 80,000 (4) 10,000 150,000
Buildings and equipment 500,000 150,000 (5) 5,000 655,000
Investment in Jupiter Company 160,000 (2)120,000 -
(3) 40,000
Goodwill (3) 40,000 40,000
Total 1,113,000 355,000 1,336,000
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Total 1,113,000 355,000 245,000 245,000 1,336,000
Assets
Cash and cash equivalents P 121,000
Accounts receivable 21,000
Inventory 350,000
Land 150,000
Buildings and equipment P655,000
Less: Accumulated depreciation 273,000 382,000
Goodwill 40,000
Total assets P1,063,000
Sales P 360,000
Cost of goods sold 200,000
Gross profit 160,000
Expenses: Depreciation P 38,000
Other expenses 20,000 58,000
Consolidated comprehensive income 102,000
Attributable to NCI 6,000
Attributable to parent P 96,000
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Retained earnings, Jan. 1 – Jupiter 47,000
Total 341,000
Consolidated CI attributable to parent 96,000
Dividends declared – Vincent ( 30,000)
Consolidated retained earnings P 407,000
Problem 18-7
P Company and Subsidiary
Consolidated Working Paper
Year Ended December 31, 2013
Statement of FP
Inventory 130,000 50,000 (5) 12,500 (6) 12,500 175,000
(9) 5,000
Other current assets 241,000 235,000 476,000
Investment in S Company 200,000 (4)160,000
(5) 40,000
Goodwill (5) 12,500 12,500
Other long-term investments 20,000 20,000
Land 140,000 80,000 220,000
Buildings and equipment 375,000 200,000 (5) 25,000 (10) 15,000 585,000
Intangible assets 20,000 20,000
Totals 1,106,000 585,000 1,508,500
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APIC 100,000 50,000 (4) 50,000 100,000
RE, 12/31 from above 336,000 235,000 411,000
Goodwill P12,500
Amortization
Inventory P12,500
Equipment (P25,000/4) 6,250
(1) To recognize NCI share in subsidiary’s adjusted prior year’s undistributed earnings
(P50,000 – P18,750) 20% = P6,250.
(2) To recognized NCI in CIof subsidiary for the current year
(P105,000 + P10,000 – P5,000 – 6,250) x 20% = P20,750
(3) To eliminated intercompany dividends paid the subsidiary.
(4) To eliminate equity of the subsidiary at date of acquisition.
(5) To allocate excess.
(6) To amortize allocated excess.
(7) To eliminate intercompany sales.
(8) To eliminate beginning inventory profit.
(9) To eliminate ending inventory profit.
(10) To eliminate fixed asset gain at beginning of year.
(11) To eliminate realized gain on fixed assets.
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Problem 18-8
Supporting computations
(1) Determination and allocation of excess schedule;
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b. Operating Expenses
Operating expenses – Apex P 170,000
Operating expenses – Small 70,000
Amortization (No. 1 above) 10,000
Excess depreciation (P50,000 / 5 years) (10,000)
Consolidated P 240,000
e. Consolidated Inventory
Inventory – Apex P 233,000
Inventory – Small 229,000
Unrealized profit in inventory – Dec. 31, 2013 ( 12,000)
Consolidated inventory P 450,000
f. Consolidated Building
Buildings – Apex P 308,000
Buildings – Small 202,000
Unrealized gain, Jan. 1, 2013 (50,000)
Realized gain, 2011– 2013 (P10,000 x 3 ) 30,000
Consolidated buildings P 490,000
g. Consolidated Patents
Patents – Small P 20,000
Allocation 120,000
Amortization, 2007 – 2013 (P10,000 x 7) ( 70,000)
Consolidated patents (net) P 70,000
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h. Consolidated Common Stock = P300,000 (Apex common stock)
Problem 18-9
Statement of FP
Cash 285,000 150,000 435,000
Accounts receivables (net) 430,000 350,000 (9) 75,000 705,000
Inventories 530,000 410,000 (8) 18,000 922,000
Land, buildings, and equipment 660,000 680,000 (3) 54,000 (5) 30,000 1,364,000
Investment in S Company 750,000 (2)636,000
(3)114,000
Goodwill (3) 60,000 60,000
Totals 2,655,000 1,590,000 3,486,000
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Less book value of interest acquired (100%)
Common stock – S Company P400,000
Additional paid in capital – S Company 80,000
Retained earnings – S Compay 156,000 636,000
Excess P114,000
Allocated to machinery (54,000)
Goodwill P 60,000
Problem 18 – 10
. December 31 .
. 2013 2012 .
Sales P800,000 P660,000
Cost of goods sold 442,000 368,000 .
Gross profit 358,000 292,000
Operation expenses 178,000 138,000 .
Consolidated comprehensive income 180,000 154,000
NCI in CI of subsidiary 10,000 10,000 .
Attributable to equity holders of Pluto P170,000 P144,000 .
Supporting computations:
. .
. 2013 2012 .
Consolidated sales:
Combined sales P850,000 P700,000
Less: intercompany sales (50,000) (40,000) .
Consolidated sales P800,000 P660,000 .
NCI in CI of subsidiary
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Star Company’s reported CI P65,000 P50,000
Gain on upstream sale of land (5,000)
Unrealized gain in upstream, inventory sales (10,000) .
Realized CI P50,000 P50,000
NCI 20% 20% .
NCI in CI of subsidiary P10,000 P10,000 .
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