1. On. January 1. 20X1, Day Co., acquired 75% interest in Night Co. for 216,000.

On this date, the

carrying amount of Night’s net identifiable assets was P192,000, equal to fair value. Non-controlling
interest was measured at a fair value of 72,000.

The financial statements of the entities on December 31, 20X1 show the following information:

Day Co. Night Co.

ASSETS
Investment in subsidiary (at cost) 216,000 -0-
Other assets 720,000 282,000
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TOTAL ASSET 936,000 282,000
=================================================================
LIABILITIES AND EQUITY
Liabilities 84,000 30,000
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Share capital 720,000 120,000
Retained earnings 132,000 132,000
-----------------------------------------------------------------------------------------------------
Total equity 852,000 252,000
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TOTAL LIABILITIES AND EQUITY 936,000 282,000
=================================================================

Revenues 360,000 96,000

Operating expenses (72,000) (36,000)
------------------------------------------------------------------------------------------------------
Profit for the year 288,000 60,000
=================================================================

Additional information
• No dividends were declared by either entity during 20x1. There were no intercompany
transactions during the period.
• However, it was determined at year-end that the goodwill is impaired by 8,000.

Prepare the December 31, 20X1 consolidated statement of financial position and consolidated
statement of profit and loss, then answer the following questions:

1. How much is the goodwill resulting from the acquisition?

A. 96,000 C. 22,000
B. 72,000 D. 66,000

2. How much is the goodwill on December 31, 20X1?

A. 96,000 C. 88,000
B. 72,000 D. 66,000
3. How much is the consolidated Profit and Loss?
A. 288,000 C. 340,000
B. 348,000 D. 456,000

4. How much is the total depreciation of FV adjustment as of Dec 31, 20X1?

A. 0 C. 2,000
B. 6,000 D. 8,000

5. How much is the goodwill resulting from the acquisition?

A. 96,000 C. 22,000
B. 72,000 D. 66,000

6. How much is the Total Consolidated Asset as of Dec 31, 20X1?

A. 1,002,000 C. 891,000
B. 1,090,000 D. 976,000

7. How much is the Total Equity Attributable to Parent as of Dec 31, 20X1?
A. 1,002,000 C. 891,000
B. 1,090,000 D. 976,000

8. How much is the Total Consolidated Equity as of Dec 31, 20X1?

A. 1,002,000 C. 891,000
B. 1,090,000 D. 976,000

9. How much is the consolidated Revenue?

A. 288,000 C. 340,000
B. 348,000 D. 456,000

10. How much is the consolidated Profit and Loss before fair value adjustment and impairment of
goodwill?
A. 288,000 C. 340,000
B. 348,000 D. 282,000

11. How much is the profit attributable to Non-Controlling Interest

A. 45,000 C. 13,000
B. 60,000 D. 15,000

12. How much is the profit attributable to Non-Controlling Interest before fair value adjustment and
impairment of goodwill?
A. 45,000 C. 13,000
B. 60,000 D. 15,000

13. How much is the Non-Controlling Interest as of December 31, 20X1

A. 85,000 C. 87,000
B. 63,000 D. 61,000

14. How much is the Impairment of Goodwill attributable to parent

A. 6,000 C. 2,000
B. 5,000 D. 3,000

15. How much is the Impairment of Goodwill attributable to NCI

A. 6,000 C. 2,000
B. 5,000 D. 3,000

16. How much is the Non-Controlling Interest on acquisition date if proportionate share was used.
A. 48,000 C. 72,000
B. 85,000 D. 63,000

17. How much is the Non-Controlling Interest on December 31 if proportionate share was used.
A. 48,000 C. 72,000
B. 85,000 D. 63,000

18. How much is the profit attributable to Non-Controlling Interest if proportionate share was used
to value NCI?
A. 45,000 C. 13,000
B. 60,000 D. 15,000

19. How much is the profit attributable to the parent if a proportionate share was used to value
NCI?
A. 288,000 C. 327,000
B. 340,000 D. 325,000

20. How much is the goodwill attributable to NCI if a proportionate share was used?
A. 96,000 C. 22,000
B. 72,000 D. 66,000