ADVANCE ACCOUNTING IIADVANCE ACCOUNTING II
LONG EXAMINATIONLONG EXAMINATION
PROBLEM 1PROBLEM 1
On January 2, 2013 PCO purchase 8On January 2, 2013 PCO purchase 80% of SCO’s outstanding stock for P648,000,P300% of SCO’s outstanding stock for P648,000,P30,000,000of the excess is of the excess is attributable toattributable to
goodwill and the balance is for equipment with estimagoodwill and the balance is for equipment with estimated remaining life of 10 years. NCI ted remaining life of 10 years. NCI is measured using fair value.is measured using fair value.
On that date the following information is available.On that date the following information is available.
ORDINARY ORDINARY SHARES SHARES RETAINED RETAINED EARNINGSEARNINGS
PCO PCO P1,050,000 P1,050,000 P1,560,000P1,560,000
SCO SCO 240,000 240,000 420,000420,000
On December 31, 2013, On December 31, 2013, SCO net income wasPhp105,000 and declared dividend of P36,000 for SCO net income wasPhp105,000 and declared dividend of P36,000 for PCO but paid onlyPCO but paid only
P30,000. PCO reported separate P30,000. PCO reported separate income of P285,000, DIVIDEND paid P138,000. Goodwill have been impaireincome of P285,000, DIVIDEND paid P138,000. Goodwill have been impaired and shouldd and should
be reported only P6,000 on December 31, 2013.be reported only P6,000 on December 31, 2013.
Compute the following:Compute the following:
1.1. Consolidated Net Income attributable to NCIConsolidated Net Income attributable to NCI
A.A. P 21,000P 21,000
B.B. P 13,800P 13,800
C.C. P 18,750P 18,750
D.D. P 18,600P 18,600
2.2. Consolidated Net Income attributable to ParentConsolidated Net Income attributable to Parent
A.A. P340,200P340,200
B.B. P360,000P360,000
C.C. P336,000P336,000
D.D. P356,400P356,400
Name: Score:Name: Score:
Course/Year Course/Year & & Section: Section: Date:Date:
