MCQADVACC

1.
2.
3.
4.
5.
6.
7.
8.
Full-Goodwill: (P600,000/70%) P640,000 = P217,143 P40,000 = P177,143

If partial goodwill: P600,000 (P640,000 x 70%) = P152,000 (P40,000 x 70%) =
P124,000
b P500,000 + P3,461
b
d equivalent to consideration transferred, P320,000
d equivalent to consideration transferred, P380,000
a
20x4 Investment income: Dividend of P10,000 x 100%
20x4 Investment balance: P500,000
d P45,000/15% = P300,000
c
Pigeons separate income
P150,00
0
Less: 60% of Homes P10,000 loss =
6,000
Less: Equipment depreciation
P10,000/ 10 years =
__1,000
Consolidated net income
P143,00
0
9. a
Non-controlling Interest in Net Income (NCINI) for Year 3
Net income of S Company
Less: Amortization of allocated excess
Multiplied by: Non-controlling interest %..........
P240,000
45,000
P195,000
30%
P 58,500
10. c
Net income from own/separate operations
P Company
S Company
Total
Less: Non-controlling Interest in Net Income*
Amortization of allocated excess (refer to amortization above)
Goodwill impairment (impairment under full-goodwill approach)
Controlling Interest in Consolidated Net Income or Profit attributable to
equity holders of parent..
P 375,000
30,000
P405,000
P5,250
3,750
0
9,000
P396,000
*Non-controlling Interest in Net Income (NCINI) for 20x4

Less: Amortization of allocated excess**
P30,000
3,750
P26,250
20%
Non-controlling Interest in Net Income (NCINI) for 20x4
P 5,250
**P270,000/80% = P337,500 (P150,000 + P150,000) = P37,500 / 10 years = P3,750
Note: Whether the partial or full-goodwill approach are used the amortization of excess are
always the same.
11. a
*Non-controlling Interest in Net Income (NCINI) for Year 3
12. c
P600,000
112,500
P487,500
30%
P146,250
P Company
S Company
Total
P 625,000
50,000
P675,000
P 8,750
6,250
0
15,000
P660,000

Less: Amortization of allocated excess**
P50,000
6,250
P43,750
20%
P 8,750
**P450,000/80% = P562,500 (P250,000 + P250,000) = P62,500 / 10 years = P6,250
Note: Whether the partial or full-goodwill approach are used the amortization of excess are
always the same.
13. b
As a general rule, if problem is silent It is assumed that expenses are generated evenly
throughout the year, thus:
Expenses (9/1/20x4-12/31/20x4): P620,000 x 4/12
P206,667
Amortization of allocated excess: P15,000 x 4/12
5,000
P211,667
14. c
Net income of S Company (P800,000 P620,000)
Multiplied by: No of mos. (9/1-12/31)
P180,000
15,000
P165,000
4/12
P 55,000
15. a
Net income of S Company (P800,000 P620,000)
Multiplied by: No of mos. (9/1-12/31)
16. b
P180,000
15,000
P165,000
4/12
P 55,000
____20%
P 22,000
Combined revenues................................................................................ P1,100,000

Combined expenses................................................................................
(700,000)
Excess acquisition-date fair value amortization.......................................
(15,000)
Consolidated net income.........................................................................
P385,000
Less: noncontrolling interest (P85,000 40%)........................................
(34,000)
Consolidated net income to controlling interest......................................
P351,000
17. c HH expense.............................................................................................
P621,000
NN expenses............................................................................................
714,000
Excess fair value amortization (70,000 10 yrs)....................................
7,000
Consolidated expenses............................................................................ P1,342,000
18. b
Step-acquisition, either full-goodwill or partial goodwill approach, the answer remains
the same.
Full-Goodwill Presentation:
Net income from own operations;
Parent - Keefe
Subsidiary - George (P500,000 P400,000)..
Impairment of goodwill (if any).
Consolidated/Group Net Income.
Less: Non-controlling interest in Net Income
Subsidiary net income from own operations:
1/1/20y0 - 4/1/20y0 (3 months):
P100,000 x 3/12 = P25,000 x 30%................
P
4/1/20y0 12/31/20y0 (9 months):
P100,000 x 9/12 = P75,000 x 20%................
Total..
P 22,500
Less: Amortization of allocated excess:
1/1/20y0 4/1/20y0 (3 months)
P6,000 x 3/12 = P1,500 x 30%..........
4/1/20y0 12/31/20y0 (9 months)
P6,000 x 9/12 = P4,500 x 20%...........
Impairment of goodwill (if any):
First 3 months: P 0 x 30%.......
Remaining 9 months: P 0 x 20%...............
CNI attributable to the controlling interest (CI-CNI)/ Profit
attributable to equity holders of parent.
P 300,000
100,000
P 400,000
6,000
0
P 394,000
7,500
15,000
450
900
0
0
21,150
P372,850
* It should be noted that the phrase without regard for this investment means that
excluding any income arising from investment in subsidiary (i.e., dividend income).
19. c - 20x4 = P86,400
Consolidated Net Income
20x4
20x5
Peters Company's reported net income
64,000
37,500
Less: dividend income from Smith
(1,600)
0
Peters' income from independent operations
62,400
37,500
Add: Peter's share of Smith's net income in 20x4 since acquisition
(.80)(8/12)(P45,000)
24,000
Less: Peter's share of Smith's net loss in 20x4 (.80 P5,000
(4,000)
Controlling Interest in Consolidated net income
86,400 33,500
20. c - 20x5 = P33,500 refer to No. 19
21. b - 20x4 = P151,400
Consolidated Retained Earnings
20x4
20x5
Peter's 12/31 retained earnings (P80,000 + P64,000 - P15,000)
P129,000
P161,500
Add: Peter's share of the increase in Smith's retained earnings
from the date of acquisition to the current date:
(.80 (P53,000 P25,000))
22,400
(.80 (P48,000 P25,000)
18,400
P151,400
P179,900
22. c - 20x5 = P179,900 refer to No. 21
23. d
Under the cost method, an investor recognizes its investment in the investee at
cost. Income is recognized only to the extent that the investor receives distributions
from the accumulated net profits (or dividend declared/paid by the investee) of the
investee arising after the date of acquisition by the investor. Distributions
(dividends) received in excess of such profits are regarded as a recovery of
investment and are accounted for as a reduction of the cost of the
investment (i.e., as a return of capital or liquidating dividend).
Therefore, the investment balance of P500,000 on the acquisition date remains to be
the same.
24.
25.
26.
27.
28.
d refer to No. 23 for further discussion.

b refer to No. 23 for further discussion.
a P40,000 x 80%
b P50,000 x 80%
a P60,000 x 80%
29. c
Full/Gross-up Goodwill Presentation:
Non-controlling interest in Net Income:
Subsidiary net income from own operations.P100,000
Less: Amortization of allocated excess*
7,000
Impairment of full-goodwill (if any)**
0
P 93,000
x: Non-controlling interests.
20%
Non-controlling interest in Net Income
P 18,600
*Amortization of allocated excess:
Increase in equipment: P30,000 / 10 years = P 3,000
Increase in buildings: P40,000 / 10 years =
4,000
Total amortization P 7,000
** In case, there is an impairment of goodwill then the amount impaired under the fullgoodwill method should also be allocated between controlling and non-controlling
interests
Partial Goodwill Presentation:
Less: Amortization of allocated excess*.
7,000
P 93,000
20%
Non-controlling interest in Net Income.
P 18,600
30. c
7,000
0
P113,000
20%
P 22,600
4,000
Total amortization.
P 7,000
interests
7,000
P113,000
20%
P 22,600
31. a
7,000
0
P123,000
20%
P 24,600
4,000
Total amortization.
P 7,000
interests
7,000
P123,000
20%
P 24,600
32. a
Book value of Stockholders Equity of Subsidiary

Common stock, 12/31/20x4
P 300,000
Retained earnings, 12/31/20x4:
Retained earnings, 1/1/20x4.P200,000
Add: Net income 20x4.. 100,000
Less: Dividends paid, 20x4..
40,000
260,000
Book value of Stockholders Equity of Subsidiary, 12/31/x4
P 560,000
Add: Adjustments to reflect fair value (P30,000 + P40,000)..
70,000
Less: Accumulated amortization of allocated excess
P7,000 x 1 year..
7,000
Fair value of Stockholders Equity of Subsidiary. 12/31/x4

Multiplied by: Non-controlling Interest %...........................
Non-controlling Interest (partial goodwill)..
Add: Non-controlling interest in Full Goodwill
(P55,000, full P44,000 partial l) or
(P55,00,000 x 20%)*
Non-controlling Interest (full)
P 623,000
20%
P 124,600
11,000
P 135,600
* this computation (i.e., P55,000 x 20%) should only be use when the fair
value of the non-controlling interest of acquiree (subsidiary) is not given.
Partial Goodwill:
Fair value of Subsidiary:
Fair value of consideration transferred: Cash
P 500,000
Less: Book value of Net Assets (Stockholders
Equity - Subsidiary): (P300,000 + P200,000) x 80%..
400,000
Allocated Excess..
P 100,000
Less: Over/Undervaluation of Assets and Liabilities:
Increase in equipment: P30,000 x 80%................... P 24,000
Increase in building: P40,000 x 80%.........................
32,000
56,000
Goodwill (Partial)..
P 44,000
Full-goodwill:
(100%) Fair value of Subsidiary:
(100%) Fair value of consideration transferred:
P500,000 / 80%..........
Less: Book value of Net Assets (Stockholders
Equity - Subsidiary)...................................
Allocated Excess..
Less: Over/Undervaluation of Assets and
Liabilities (P40,000 + P30,000).
Goodwill (Full/Gross-up)....
33. e
P 625,000
500,000
P 125,000
P
70,000
55,000

P 300,000
Retained earnings, 1/1/20x5 (refer to No. 32)
P260,000
Add: Net income, 20x5.
120,000
Less: Dividends paid, 20x5
50,000 330,000
P 630,000
70,000
Less: Accumulated amortization of allocated excess 2 yrs
14,000
P 686,000
Multiplied by: Non-controlling Interest %..............................
20%
P 137,200
(P55,00,000 x 20%)*
11,000
P 148,200
34. e
P 300,000
Retained earnings, 1/1/20x6.P330,000
Add: Net income, 20x6
130,000
Less: Dividends paid, 20x6..
60,000
400,000
P 700,000
70,000
Less: Accumulated amortization of allocated excess
(1/1/20x4 12/31/20x6): P7,000 x 3 years
21,000
P 749,000
Multiplied by: Non-controlling Interest %............................
20%
P 149,800
(P55,00,000 x 20%)*
11,000
P 160,800
* this computation (i.e., P55,000 x 20%) should only be use when the fair
value of the non-controlling interest of acquiree (subsidiary) is not given.
35. d Economic Unit or Entity Concept (as required by PFRS 10)
P Company
S Company
Total
Amortization of allocated excess
Add: NCINI
CNI - entity concept
P 500,000
100,000
P600,000
P 20,000
0
_
0
20,000
P580,000
__20,000
P600,000
P100,000
_______0
P100,000
20%
P 20,000
36. c Parent Company Concept Parents Net Income only (not required by PFRS
10)
P Company
S Company
Total
CNI - entity concept
P 500,000
100,000
P600,000
P 20,000
0
_
0
20,000
P580,000
P100,000
_______0
P100,000
20%
P 20,000
37. Podexs separate earnings for 20x6.............................................. P2,000,000

Dividend income from Sodex................................................... __120,000
Podexs 20x6 net income..................................................... P2,120,000
38.
P2,260,000
Podexs separate earnings for 20X6
P2,000,000
Podexs equity in net income of Sodex.....................................
300,000
Less: Amortization of cost in excess of book value...................
(40,000)
Podexs 20x6 net income..................................................... P2,260,000
39. b
40. b
Net Income from own operations:
20x4
20x5
Parent P 100,000 P100,000
Subsidiary...
25,000
35,000
P125,000
P135,000
Subsidiarys other comprehensive income..
5,000
10,000
Total Comprehensive Income..... P130,000
P145,000
Less: Amortization of allocated excess.
6,250
6,250
Impairment of full- goodwill (if any).
0
0
Consolidated /Group Comprehensive Income P123,750
P138,750
Less: Non-controlling interest in Comprehensive
Income *
4,750
7,750
Controlling Interest in Consolidated
__________________
Comprehensive Income . P119,000
P131,000
*Non-controlling interest in Comprehensive Income:
20x4
20x5
Subsidiarys:
Net income from own operations.......P 25,000
P 35,000
Other Comprehensive Income (P30,000
P25,000)....
5,000
10,000
Subsidiarys Comprehensive Income........P 30,000
P45,000
Less: Amortization of allocated excess*..
6,250
6,250
Impairment of full-goodwill (if any).....
0
0
P 23,750
P 38,750
20%
20%
Non-controlling interest in Comprehensive Income...P
4,750
P 7,750
Increase in other intangibles: P50,000 / 8 years = P 6,250
41.
42.
43.
44.
c refer to No. 40
c refer to No. 40
b- refer to No. 40
d
Inventory not yet sold in 20x4
Building: (P390,000 P200,000)/ 10 years
Equipment (P280,000 P350,000)/ 5 years
45. c
P
19,000
( 14,000)
P 5,000
Plochmans acquisition entry is:

Investment in Shure40,000,000
Retained earnings (acquisition-related expense close to
retained since only balance sheet accounts are being
examined) 1,000,000
Common stock, 1,000,000 x P1 par
1,000,000
PIC in excess of par [(1,000,000 x P39) P800,000)

Cash (P800,000 + P1,000,000)..
32,000,000
1,800,000
Eliminating entries are:

Book value of stockholders equity:
Stockholders equity-Shure 6,000,000
Investment in Shure
6,000,000
Allocated excess (acquisition/purchase differential):
Identifiable assets. 7,000,000
Long-term debt. 500,000
Goodwill..28,500,000
Lawsuit liability.
2,000,000
Investment in Shure
34,000,000
46. d refer to No. 45

47. a
48. a
Cost of Goods Sold P80,000 debit
Depreciation Expense (P192,000/120) 7 = P11,200 debit
49. c
Cost of Goods Sold (P60,000 x 4/6) = P40,000 debit
Interest Expense: (P15,000/5) = P3,000 debit
50. a [(P250,000 - P180,000)/10]7
51. c
[(P380,000 - P260,000)/120]88
52. a
53. c
P170,000 - {[P320,000 - (P300,000 - P170,000)]/10}2
54. b
[P320,000 - (P300,000 - P170,000)]/10
55. d
56. d
P105,000 - {[P405,000 - (P450,000 - P105,000)]/20}2
57. a
[P405,000 - (P450,000 - P105,000)]/20
58. d - The acquisition method consolidates assets at fair value at acquisition date
regardless of the parents percentage ownership.
59. d
P: BV,12/31/20x6
P250,000
S:
BV of building, 12/31/20x4
P170,000
Add: Adjustments to reflect fair value, 1/1/20x4
(P350,000 P240,000)
110,000
Less: Amortization of excess (P110,000/10) x 3 years
33,000
247,000
P497,000
60. b
P: BV,12/31/20x5
P 975,000
S:
P105,000
Add: Adjustments to reflect fair value, 1/4/20x4
(P120,000 P90,000)
30,000
Less: Amortization of excess (P30,000/10) x 2 years
6,000
129,000
P1,104,000
61. c - An asset acquired in a business combination is initially valued at 100% acquisitiondate fair value and subsequently amortized its useful life.
Patent fair value at January 1, 20x4.........................................................
Amortization for 2 years (10 year life).....................................................
Patent reported amount December 31, 20x5...........................................
P45,000
(9,000)
P36,000
62. b
63.
64.
65.
66.
67.
P200,000
Adjustments to reflect fair value, 1/1/20x4 (P300,000 P200,000) 100,000
Depreciation 1/1/20x4 12/31/20x6 (P100,000/20 x 3 years)
( 15,000)
P285,000
d same with No. 62
d
BV of equipment, 1/1/20x4
P 80,000
Adjustments to reflect fair value, 1/1/20x4 (P80,000 P75,000) ( 5,000)
1,500
P 76,500
a
Adjustments to reflect fair value, 1/1/20x4 (P80,000 P75,000) (P 5,000)
1,500
(P 3,500)
d 1/2/20x4:
BV of equipment, 1/1/20x4
P200,000
Adjustments to reflect fair value, 1/1/20x4 (P300,000 P200,000)
100,000
P300,000
c
Consolidated Net Income for 20x4
P Company P30,200 (P150,0000 P20,000 P60,000)
S Company (P100,000 P15,000 P45,000)
Total
Less: Non-controlling Interest in Net Income
Goodwill impairment
Controlling Interest in Consolidated Net Income or Profit
attributable to equity holders of parent..
Add: Non-controlling Interest in Net Income (NCINI)
P 70,000
40,000
P110,000
P
0
0
____0
____0
P110,000
_____0
P110,000
68. b
Plimsol: P100,000 +
P200,000,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,P 300,000
Shipping: P75,000 + P150,000.
225,000
P 525,000
69.
Retained Earnings - Plimsol, 1/1/20x4 (cost method, same with equity method and
consoiidated retained earnings since it is the date of acdquisition)
P
150,000
Add: CI CNI (refer to No. 71)
110,000
Less: CI Dividends (Dividend of parent only)
25,000
Retained earnings, 12/31/20x4 (equity method same with CRE)
P 235,000
70. d
Liabilities:
Plimsol (P40,000 + P75,000)
Shipping (P25,000 + P50,000)
P115,000
75,000
P 190,000
71. d
Total assets (No. 72)
Les: Liabilities (No. 74)
Stockholders equity
P525,000
190,000
P335,000
72. b
73. d
74. d
Decrease in Buildings account:

Fair value
Book value..
Decrease.
P 8,000
__10,000
P 2,000
Decrease in buildings account (refer to No. 73)

Less: Increase due to depreciation (P2,000/10)
Decrease in buildings accounts..
P 2,000
200
P 1,800
Decrease in buildings account (refer to No. 74)

Less: Increase due to depreciation (P2,000/10)
Decrease in buildings accounts..
P 1,800
200
P 1,600
Increase in Equipment account:

Fair value
Book value..
Increase.
P 14,000
__18,000
P 4,000
75. a
76. a
Increase in equipment account (refer to No. 76)

Less: Decrease due to depreciation (P4,000/4)
Increase in equipment accounts..
77. a
Increase in equipment account (refer to No. 77)

Less: Decrease due to depreciation (P4,000/4
Increase in equipment accounts..
P
P
4,000
1,000
3,000
P 3,000
1,000
P 2,000
78. a
Increase in Land account:
Fair valueP 12,000
Book value..
5,000
Increase.. P 7,000
79. b refer to No. 78, no depreciation/amortization
80. b refer to No. 78, no depreciation/amortization
81. e
Increase in Patent account:
Fair value
Book value..
Increase.
P 11,000
_
0
P 11,000
(P234,000/90%) (P160,000 + P80,000) = P20,000 (P4,000 P2,000 + P7,000) =

P11,000.
Partial or full-goodwill approach, the amortization remains the same.

82. e
83. d
Increase in patent account (refer to No. 85)

Less: Decrease due to depreciation (P11,000/5).
Increase in patent accounts.
P 11,000
2,200
P 8,800
Increase in patent account (refer to No. 86)

Less: Decrease due to depreciation (P11,000/5).
Increase in patent accounts.
84. c
Fair Value of Subsidiary:
Consideration Transferred (5,400 shares)
Less: Book value of SHE-S, 1/1:
Common stock S: P50,000 x 90%
APIC S: P15,000 x 90%
RE S: P41,000 x 90%
Allocated Excess
Less: Over/undervaluation of A & L:
Increase in Inv. (P17,100P16,100) x 90%
Increase in Eqpt. (P48,000P40,000) x 90%
Increase in Patents (P13,000P10,000) x 90%
Positive Excess: Goodwill
Amortization of allocated excess - Starting January 1:
Inventory: P1,000 / 1 year
Equipment: P8,000 / 4 years
Patents: P3,000 / 10 years
85. c
Common stock S
APIC S
RE S
Stockholders equity Subsidiary, 1/1
Add: Adjustments to reflect fair value
Fair value of Stockholders Equity S, 1/1
x: Non-controlling) interests
Non-controlling Interests (in net assets)
8,800
2,200
6,600
P120,600
P 45,000
13,500
36,900 95,400
P 25,200
P
900
7,200
2,700 10,800
P 14,400
P 1,000
2,000
300
P 3,300
P 50,000
15,000
41,000
P106,000
12,000
P118,000
10%
P 11,800
86. a P48,000, parent only.

87. a P48,000. On the date of acquisition, the parents retained earnings is also the
consolidated retained earnings.
88. No requirement.
89. b P120,600, the initial value
90. b P4,000 x 90% = P3,600
91. c
P Company P30,200 (P4,000 x 90%)
S Company
Total
P26,600
9,400
P36,000

Goodwill impairment
P 9,400
3,300)
P 6,100
10%
P
610
____0
P
610

Less: Non-controlling interest on impairment loss on full-goodwill
Non-controlling Interest in Net Income (NCINI)
Noncontrolling Interests (in net assets):

Common stock - S, 12/31
Additional paid-in capital - S, 12/31
15,000
Retained earnings - S, 12/31:
RE-S, 1/1/2011
Add: NI-S, 2011
Less: Dividends S
Book value of SHE - S, 12/31
Add: Adjustments to reflect fair value, 1/1
Less: Amortization of allocated excess (1 yr.)
Fair Value of Net Assets/SHE - S, 12/31
x: Noncontrolling Interest %
3,910
P32,090
610
P32,700
*Net income of subsidiary 20x4

Amortization of allocated excess 20x4
92. c
610
3,300
____0
P 50,000
P 41,000
9,400
4,000
46,400
P 111,400
12,000
3,300
P 120,100
10%
Noncontrolling Interest (in net assets), 12/31

P 12,010
93. b refer to 91 for computation
94. c refer to 91 for computation
95. b
Controlling RE / RE Attributable to EH of Parent, 1/1 (refer to No. 102
P 48,000
Add: CI CNI (refer to 106 and 109)
32,090
Less: CI Dividends (Dividend of parent only)
15,000
Controlling RE / RE Attributable to EH of Parent, 12/31
P 65,090
96. b same with No. 95
97. c
Consolidated Equity:
Controlling Interest / Equity Holders
Attributable to Parent:
Common stock P: [P100,000 + P120,600 (5,400 shares x P10 par)] P154,000
APIC P: [15,000 + [P120,600 (5,400 x P10)]
81,600
RE P (refer to No. 105)
65,090
Parents Stockholders Equity or Controlling Interest Equity
P300,690
Noncontrolling Interest
12,010
Consolidated Equity
P312,700
98. c
P95,000 = (P956,000 / .80) - P1,000,000 - P100,000
99. c
P251,000 = .20[(P956,000 + P239,000) + (P190,000 - P5,000 - P125,000)]
100. b Combined revenues................................................................................. P1,300,000

Combined expenses................................................................................
(800,000)
Trademark amortization...........................................................................
(6,000)
Patented technology amortization...........................................................
(8,000)
Consolidated net income.........................................................................
P486,000
101. c
NCI-CNI - P34,400; NCI P260,800

Subsidiary income (P100,000 P14,000 excess amortizations).............
Non-controlling interest percentage........................................................
Non-controlling interest in subsidiary income..........................................
P86,000
40%
P34,400
Fair value of non-controlling interest at acquisition date.........................

40% change in Scott book value since acquisition..................................
Excess fair value amortization (P14,000 40%).....................................
40% current year income........................................................................
Non-controlling interest at end of year....................................................
P180,000
52,000
(5,600)
34,400
P260,800
102. a MM trademark balance............................................................................

SS trademark balance............................................................................
Excess fair value......................................................................................
Two years amortization (10-year life).......................................................
Consolidated trademarks.........................................................................
P260,000
200,000
60,000
(12,000)
P508,000
103. a Fair value of non-controlling interest on April 1.......................................

30% of net income for 9 months ( year P240,000 30%)................
Non-controlling interest December 31.....................................................
P165,000
54,000
P219,000
104. c
Non-controlling interest (full-goodwill), December 31, 20x4
Book value of SHE S, 12/31/20x4
Add: Net income of S 20x4
Total
Less: Dividends paid 20x4
Stockholders equity S Company, December 31, Year 2
Adjustments to reflect fair value - (over) undervaluation of assets and
liabilities, date of acquisition January 1, 20x4
Amortization of allocated excess (refer to amortization above: P200,000/10
Fair value of stockholders equity of subsidiary, December 31, 20x5
Multiplied by: Non-controlling Interest percentage...
Non-controlling interest (partial)
Add: NCI on full-goodwill P85,714 P60,000)
Non-controlling interest (full)
P1,000,000
___150,000
P1,150,000
____90,000
P1,060,000
200,000
_( 20,000)
P1,240,000
30
%
P 372,000
___25,714
P397,714
*P900,000/70% = P1,285,714 P1,000,000 = P285,714 P200,000 = P85,714, full goodwill

*P900,000 (P1,000,000 x 70%) = P200,000 (P200,000 x 70%) = P60,000, partial
goodwill
It is assumed that full-goodwill is used. But, it should be noted that PFRS 3 either partial or
full-goodwill approach are considered acceptable.
105. b (P50,000 + P70,000) x 25% = P30,000

106. b P only.
107. b
{(P250,000/.8) + [P75,000 + P90,000 - P25,000 - P50,000 - P30,000 (P80,000/8)2]}.2
108. d
{(P420,000/.7) + [P160,000 + P210,000 - P60,000 - P80,000 - P50,000 (P90,000/5)2]}.3

109. a - P650,000 =P500,000 + P200,000 - P50,000
110. a assume the use of equity method
Punns equity in net income of Sunn (3 months ended,12/31/x6)
P 200,000
Amortization of cost in excess of book value................................
(
60,000)
Increase in Parents retained earnings.
P 140,000
e - If cost model/cost method, the answer would be P100,000.
Dividend income.
P 100,000
111. c P60,000 x 80% = P48,000
112. c
Investment.1/1/20x4
P105,000
Add: Share in net income 20x4 (P45,000 x 80%)
36,000
Less: Dividends received
12,000
Investment, 12/31/20x4
P129,000
Add: Share in net income 20x5 (P60,000 x 80%)
48,000
Less: Dividends received
18,000
Investment, 12/31/20x5
P159,000
113. d
Investment balance, 1/1/20x4.. P 150,000
Add: Pumas equity in net income of Slume (30% x P25,000)..
7,500
Less: Dividends (P30% x P10,000).
3,000
Amortization of cost in excess of book value
(P50,000/10 years) x 30%..............................................................
1,500
Pumas 20x6 net income (equity method)....................................
P 153,000
114. b
Pumas equity in net income of Slume (30% x P25,000)....
P
7,500
Less: Amortization of cost in excess of book value
(P50,000/10 years) x 30%..............................................................
1,500
Investment income 20x4 (equity method).
P
6,000
115. b
Fullgoodwill Aproach
Fair value of Subsidiary (100%)
Consideration transferred (80%)..
Fair value of NCI (given) (20%)..
Fair value of Subsidiary (100%).
Less: Book value of stockholders equity of Son:
Common stock (P100,000 x 100%)
.
Retained earnings (P60,000 x 100%)...
Allocated excess (excess of cost over book value)
..
Less: Over/under valuation of assets and liabilities:
Increase in land (P5,000 x 100%)
.
Increase in equipment (P10,000 x 100%)
Positive excess: Full-goodwill (excess of cost over
fair value)
P 180,000
20,000
P 200,000
P 100,000
60,000
160,000
P 40,000
P
5,000
___10,000
15,000
P 25,000
...
Partial-Goodwill Approach
Consideration
transferred..
Less: Book value of stockholders equity of S:
Common stock (P100,000 x 90%)
.
Retained earnings (P60,000 x 90%)
...
Allocated excess (excess of cost over book value)
..
Less: Over/under valuation of assets and liabilities:
Increase in land (P5,000 x 90%)
.
Increase in equipment (P10,000 x 90%)
Positive excess: partial-goodwill (excess of cost over
fair value)
...
P 180,000
P 90,000
54,000
144,000
P
4,500
___9,000
36,000
13,500
P 22,500
A summary or depreciation and amortization adjustments is as follows:

Account
Adjustments
to
amortized
Subject to Annual Amortization
Equipment (net).........
Patent
116. d
be
Over/
under
10,000
25,000
Lif
e
5
5
Annual
Amount
Current
Year(20x4)
P 2,000
5,00
0
P 7,000
P 2,000
5,000
P 7,000
Investment in Wisden
1/1/x4.
180,000
18,000
Dividends
(20,000 x
90%)
NI of S
(60,000
54,000
Amortization
90%).
12,600
90%)
(P14,000 x
1/1/x6
203,400
117. c
Investment in Wisden
1/1/x6.
230,400
9,000
118. d 20x3: P30,000

20x4: P40,000 x
119. a no changes in
there
are
investment
and
120. None no answer
cost model share in
of subsidiary does
121. d
Investment
20x7:
Original
Dividends S
(10,000 x
90%)
investment
unless
dispositions
of
permanent impairment.
NI of S
(30,000
x
27,000
Amortization
90%).
6,300
x 75% = P22,500
75% = P30,000
available. Under the

net income or earnings
not affect investment.
(7,000 x 90%)
account, December 31,

investment
1/1/x6
215,100
P 550,000
Tinys earnings, 20x4-20x77: 100% x P166,000 166,000
Less: Dividends received: 100% x P114,000 114,000
Balance, December 31, 20x7.. P602,000
122. a
The adjusting entry required in 20x7 to convert from the cost to the equity method is:
Investment in Tiny.52,000
Retained earnings beg.. 4,000
Dividend revenue 54,000
Equity in subsidiary income of Tiny.
110,000
123. b
124. b Dividend paid S, P70,000 x 60% = P42,000
125. d CNI amounted to P265,000 [CI-CNI, P235,000 and NCI-CNI, P30,000

P Company
S Company
Total
Goodwill impairment
P190,000
90,000
P280,000
P 30,000
15,000
____0
45,000
P235,000
30,000
P265,000
*Net income of subsidiary 20x4

Amortization of allocated excess 20x4
Less: Non-controlling interest on impairment loss on full-goodwill (P1,500 x
15%)*
P 90,000
( 15,000_
P 75,000
40%
P 30,000
______0
P 30,000
20x5 results of operations are as follows:
Sales
Less: Cost of goods sold Operating expenses
Net income from its own separate operations
Add: Investment income
Net income
Computation of Goodwill:
Consideration transferred: Cash (60%)
Fair value of NCI (given) (40%)
Peer
P 600,000
410,000
P 190,000
45,000
P 235,000
Sea-Breeze
P 300,000
210,000
P 90,000
P 90,000
P 414,000
276,000
P 690,000
Less: Book value of stockholders equity of Sea (P550,000 x

100%)
Allocated excess (excess of cost over book value)..
Add (deduct): (Over) under valuation of assets and liabilities
(P140,000 x 100%)
Positive excess: Full-goodwill (excess of cost over fair value)
Amortization of Allocated Excess
Book Value
Buildings (net)- 6
300,000
Equipment (net) 4
300,000
Patent -10
-0Net
Fair Value
360,000
280,000
100,000
__550,000
140,000
140,000
0
Over/under
P 60,000
(20,000)
100,000
P 140,000
Amort.
P 10,000
(5,000)
10,000
P 15,000
126. c refer to No. 125 for computations

127. b refer to No. 125 for computations
128. c - P811,000.
Consolidated Retained Earnings, December 31, 20x5
Retained earnings - Parent Company, January 1, 20x5 (cost
model)
Adjustment to convert from cost model to equity method for
purposes of consolidation or to establish reciprocity:/Parents
share in adjusted net increased in subsidiarys retained
earnings:
Retained earnings Subsidiary, January 1, 20x5
Less: Retained earnings Subsidiary, January 1, 20x2
Increase in retained earnings since date of acquisition
Less: Amortization of allocated excess 20x2 20x4
(P15,000 x 3 years)
Multiplied by: Controlling interests %...................
Less: Goodwill impairment loss (full-goodwill),
Consolidated Retained earnings, January 1, 20x5
Note:
a. Date of acquisition: RE of Parent = Consolidated RE
Regardless of the method used in the books of the subsidiary,
always be applied
b. Subsequent to date of acquisition:
Retained earnings of Parent under equity method = CRE
P700,000
P 300,000
70,000
P 230,000
45,000
P 185,000
60%
P
111,000
0
111,00
0
P 811,000
the following rule should
Since, the P811,000 is the retained earnings of parent under the equity method, it should also be
considered as the parents portion or interest in consolidated retained earnings or simply the
consolidated retained earnings.
129. c - P811,000 refer to note (b) of No. 128

130. b P111,000 refer to No. 128
131. d
Consolidated Retained earnings, January 1, 20x5 (refer to Nos. 118 and 119)
Add: Controlling Interest in Consolidated Net Income or
Profit attributable to equity holders of parent for 20x5
Total
P 811,000
235,00
0
P1,046,00
0
92,00
0
P
954,000
Less: Dividends paid Parent Company for 20x5

132. d refer to No.131

133. c
Non-controlling interest (partial-goodwill), December 31, 2015
P
480,000
Common stock Subsidiary Company, December 31, 2015

Retained earnings Subsidiary Company, December 31, 2015
Retained earnings Subsidiary Company, January 1, 2015
Add: Net income of subsidiary for 2015
Less: Dividends paid Subsidiary - 2015
Stockholders equity Subsidiary Company, December 31,
2015
Adjustments to reflect fair value - (over) undervaluation
of assets and liabilities, date of acquisition (January 1,
2012)
(P15,000 x 4)
Fair value of stockholders equity of subsidiary, 12/31/ 2015
Multiplied by: Non-controlling Interest percentage.
Non-controlling interest (partial)
Add: NCI on full-goodwill.
Non-controlling interest (full)
P300,00
0
90,00
0
70,00
0
320,000
P
800,000
140,000
( 60,000
)
P
880,000
4
0
P
352,000
____0
P
352,000
134. c
Stockholders Equity
Common stock - Peer
Retained earnings
Parents Stockholders Equity/Equity Attributable to the
Owners of the Parent
Non-controlling interest**
Total Stockholders Equity (Total Equity)
Total Liabilities and Stockholders Equity
135. c
P
724,000
954,000
P
1,678,000
352,000
P 985,500
P2,030,000
Investment in Sea-Breeze
1/1/x2.
414,000
42,000
Retro
111,000
60%
Investment Income
Dividends S
NI of S
(70,000 x
NI of S
(90,000
54,000
Amortization
60%).
9,000
60%)
(P15,000 x
Amortization
(P15,000 x 60%)
9,000
12/31/x5
528,000
136.
137.
138.
139.
140.
141.
142.
143.
144.
145.
146.
147.
(90,000
c
d refer to No. 125
c refer to No. 125
b refer to No. 125
c refer to No. 128
c refer to No. 128
a not applicable under equity method.
d refer to No. 131
d refer to No. 131
d refer to No. 133
c refer to No. 134
b
Consideration transferred: 10,500 shares x P95
Less: BV of SHE S (?)
Allocated excess;
Less: O/U valuation of A and L:
Undervaluation of land
Overvaluation of buildings
Undervaluation of equipment
Undervaluation/unrecorded trademark
54,000
60%)
45,000
P997,500
857,500
P140,000
P40,000
( 30,000)
80,000
50,000 140,000
P
0
148. a P900,000 + P500,000 = P1,400,000

149. d assumed that total expenses includes cost of goods sold which is different when
the question is total operating expenses
Cost of goods sold (P360,000 + P200,000)
P 560,000
Depreciation expense (P140,000 + P40,000)
180,000
Other expenses (P100,000 + P60,000)
160,000
Amortization of allocated excess:
Buildings: (P30,000) / 20
(P1,500)
Equipment; P80,000 / 10
8,000
Trademark: P50,000 / 16
3,125
9,625
Total expenses
P909,625
150. b (P750,000 + P280,000) P30,000 + (P1,500 x 5 years) = P1,007,500
151. c (P300,000 + P500,000) + P80,000 (P8,000 x 5 years) = P840,000
152. c P450,000 + P180,000 + P40,000 = P670,000
153. d P50,000 P3,125 x 5 years) = P34,375
154. a P only (the stock issued In 20x0 includes already in the December 31, 20x4
balance.
155. a P only
156. a
Consolidated Retained earnings, January 1, 20x4 (equity method)
P
1,350,000
Add: Controlling
Interest in Consolidated Net Income or Profit
attributable to
equity holders of parent for 20x4
Total
Less: Dividends paid P Company for 20x4
Consolidated Retained Earnings, December 31, 20x4 (under equity
method)
Net Income from own operations:
Sales
Less: cost of goods sold
Gross profit
Less: Depreciation expense
Other expenses
Net income
Non-controlling interest (full-goodwill), December 31, 20x4
P Company
S Company
Total
Less: Non-controlling Interest in Net Income
490,375
P1,840,375
195,000
P1,645,375
P Co
P900,000
360,000
P540,000
140,000
100,000
P300,000
S Co
P500,000
200,000
P300,000
40,000
60,000
P200,000
P300,000
200,000
P500,000
P
0
9,625
_
0
9,625
P490,375
157. c
Note: Normally, the term used in the requirement equity in subsidiary income, is a
term used under equity method, but it should be noted that under PAS 27, it prohibits the
use of equity method for a parent to consolidate a subsidiary. But, assuming the use of
equity method, the answer would be, P190,375.
Share in net income: P200,000 x 100%
P200,000
9,625
P190,375
158. c P3,1250 / .20 = P15,750
159. a
Punns separate earnings for 20x6..............................................
P 6,000,000
Add: Punns equity in net income of Sunn (3 months ended,12/31/x6)
200,000
Less: Amortization of cost in excess of book value.......................
(
60,000)
Punns 20x6 net income (equity method).....................................
P 6,140,000
160. a assume the use of equity method
Punns equity in net income of Sunn (3 months ended,12/31/x6)
P 200,000
Amortization of cost in excess of book value................................
(
60,000)
Increase in Parents retained earnings.
P 140,000
E - If cost model/cost method, the answer would be P100,000.

Dividend income.
P 100,000
161. a
Net income of S (5/1/x5 12/31/x5): P840,000 x 8/12

Less: Dividend S (11/1/20x5 no need to pro-rate)
Cumulative net income less dividends since
date of acquisition, 1/1/20x6 (date to establish reciprocity
not 12/31/x6)
x: Controlling interests
162. b
Retained earnings S Company, 1/1/20x4
Less: Retained earnings S Company, 12/31/20x6
should always be beginning of the year, not 12/31/x6)
P560,000
300,000
P260,000
P208,000
80%
P 60,000
190,000
P130,000
P117,000
90%
163. (b)
Net income of Subsidiary 2015 and 2016 (P15,000 + P22,000).P 37,000
Less: Dividends of Subsidiary 2015 and 2016 (P6,000 + P9,000).. . 15,000
Cumulative net income less dividends since date of acquisition, 1/1/2017 (date to establish
reciprocity should always be beginning of the year, not 12/31/17) / Increase in
Retained earnings...P 22,000
70%
P 15,400
It should be noted that the amortization/depreciation and any unrealized/realized profits (in case of
intercompany sales of inventory/fixed assets) should not be included (refer to next number) as part of the
entry to established reciprocity since there will be separate eliminating entry to be made at the end of the
year (2017) for amortization and depreciation.
Further, the eliminating entry to establish reciprocity for the year 20x7 should be made on January 1, 2017
not December 31, 2017
Incidentally, the entry to convert from cost method to equity method or the entry to establish reciprocity at
the beginning of the year, 1/1/2017 would be as follows:
Investment in Subsidiary 15,400
Retained earning Parent Company, 1/1/2017.
15,400
164. (a)
Net income of Subsidiary 2015 and 2016 (P15,000 + P22,000). P 37,000
Less: Dividends of Subsidiary 2015 and 2016 (P6,000 + P9,000)
15,000
Increase in Retained earnings for 2 years P 22,000
Less: Amortization of allocated excess [(P80,000 P60,000)/10 years x 2 years]
4,000
P 18,000
x: Controlling interests.
70%
Retroactive amount, December 31, 20x6 or January 1, 2017 P 12,600
165. b
{(P260,000 - P230,000) + [(P650,000 - P590,000)/120] 8}.8
166. d
{(P190,000 - P160,000) 4/6 - [(P241,000 - P220,000)/60] 5}.7
167. b
168.
169.
170.
171.
172.
173.
174.
[{(P84,000 + P105,000) - [(P310,000 - P220,000)/20]2} - (P30,000 + P50,000)].8

b building account in the books of subsidiary at fair value
e building account in the books of subsidiary at book value
d push-down accounting: equipment account in the books of subsidiary is at fair value
b
a P540,000 = (P500,000 + P150,000 P90,000 P20,000)
c equivalent to the original cost
d - In consolidating the subsidiary's figures, all intercompany balances must be
eliminated in their entirety for external reporting purposes. Even though the subsidiary
is less than fully owned, the parent nonetheless controls it.
175. b - Intercompany receivables and payables from unconsolidated subsidiaries would not
be eliminated.
Quiz - XVI
1.
2.
3.
4.
5.
6.
7.
8.
9.
b
{P150,000 - [(P550,000 - P450,000)/10] - [(P300,000 - P280,000)/5]}.8
P36,925
{P110,000 - (P250,000 - P160,000 - P50,000) - [(P130,000 - P100,000) 3/5] +
[(P215,000 - P200,000)/5] (3/12)}.7
P545,500
P500,000 + [P110,000 + P130,000 - P30,000 - P40,000 - P55,000 - (P200,000/8)2].7
P388,000
P320,000 + [P100,000 + P140,000 - P40,000 - P50,000 - P35,000 - (P75,000/5)2].8
P15,400
{P80,000 - [(P290,000 - P250,000)/8] + [(P160,000 - P150,000)/5]}.2
P13,200
{P150,000 - (P470,000 - P300,000 - P90,000) - [(P190,000 - P160,000) 4/5] [(P520,000 -P400,000)/10] (4/12) + [(P380,000 - P350,000)/5] (4/12)}.3
P70,500
{(P250,000/.8) + [P75,000 + P90,000 - P25,000 - P50,000 - P30,000 (P80,000/8)2]}.2
20x5: P56,000
20x6: P14,000
Purchase differential amortization to investment income
20x5
20x6
Inventory (P300,000 - P240,000).7
P42,000
P
0
Plant Assets [(P700,000 - P560,000)/7].7
14,000
14,000
P56,000
P14,000
Consolidation worksheet:
Cost of Goods Sold
Depreciation Expense
P60,000
20,000
10. P2,900
Sandpipers share of Shore net income (P18,000 x 30%)
Add: Overvalued accounts receivable collected in 20x5
Undervalued accounts payable paid in 20x5
Less: Undervalued inventories sold in 20x5
Depreciation on building undervaluation P3,600/6
Amortization on patent P3,200/8 years
Income from Shore/Income from subsidiary
11. P1,050,000
Parrcos income from its own separate operations for 20x6
Subbcos net income for the nine months ended 12/31/x6
P
(
(
(
P 900,000
200,000
5,400
600
300
2,400)
600)
400)
2,900
Less: Amortization of cost in excess of book value (P30,000 60%)

___50,000)
Consolidated net income for 20x6 (economic unit concept)
P1,050,000
Division of consolidated net income:
To controlling interest (Parrcos stockholders)
P 990,000
To non-controlling interest (stockholders of Subbco)
___60,000
P1,050,000
12. P990,000
Parrcos income from its own separate operations for 20x6
P 900,000
Parrcos equity in net income of Subbco Company for
nine months ended 12/31/x6 (P200,000 60%)
120,000
Less: Parrcos amortization of cost in excess of book value
( 30,000)
Consolidated net income for 20x6 (parent company concept)
P 990,000
13. P400,000 (P100,000 + P300,000)
14.
P3,600,000
Plycos separate earnings for 20x6
P 3,500,000
Add:Dividend income from Slyco.................................................
100,000
Plycos 20x6 net income
P 3,600,000
15.
P3,867,000
Plycos separate earnings for 20x6.............................................
Add:Plycos equity in net income of Slyco.....................................
Less: Amortization of cost in excess of book value.......................
Plycos 20x6 net income...............................................................
16.
P3,500,000
400,000
(
33,000)
P3,867,000
P3,867,000 (same amount as calculated in Requirement 16).
17. P52,000
Net income of S (5/1/x5 12/31/x5): P210,000 x 8/12
Less: Dividend S (11/1/20x5 no need to pro-rate)
not or 1/1/20x6)
P140,000
75,000
P 65,000
80%
P 52,000
18. P12,600
[{(P15,000 + P22,000) - [(P80,000 - P60,000)/10]2} - (P6,000 + P9,000)].7 =
P12,600
19. 20x4 = P86,400

Consolidated Net Income
20x4
20x5
Peters Company's reported net income
64,000
37,500
Less: dividend income from Smith
(1,600)
0
Peters' income from independent operations
62,400
37,500
Add: Peter's share of Smith's net income in 20x4 since acquisition
(.80)(8/12)(P45,000)
24,000
Less: Peter's share of Smith's net loss in 20x4 (.80 P5,000
(4,000)
Controlling Interest in Consolidated net income

20. 20x5 = P33,500 refer to No. 19
21. 20x4 = P151,400
Consolidated Retained Earnings
20x5
Peter's 12/31 retained earnings (P80,000 + P64,000 - P15,000)
P161,500
Add: Peter's share of the increase in Smith's retained earnings
from the date of acquisition to the current date:
(.80 (P53,000 P25,000))
(.80 (P48,000 P25,000)
18,400
P179,900
22. 20x5 = P179,900 refer to No. 21
19. P9,200
Pinta Company 20y4 equity-method income:
Proportionate share of reported income (P30,000 x .40)
Amortization of differential assigned to:
Buildings and equipment [(P35,000 x .40) / 5 years]
Goodwill (P8,000: not impaired)
Investment Income
Assignment of differential
Purchase price
Proportionate share of book value of
net assets (P320,000 x .40)
Proportionate share of fair value increase in
buildings and equipment (P35,000 x .40)
Goodwill
86,400
33,500
20x4
P129,000
22,400
P151,400
P 12,000
( 2,800)
-0P 9,200
P150,000
(128,000)
P
(14,000)
8,000
20.
P3,600 - Dividend income, 20y4 (P9,000 x .40)
3,600
21.
Cost-method account balance (unchanged):

Equity-method account balance:
Balance, January 1, 20y4
Investment income
Dividends received
Balance, December 31, 20y4
P150,000
P150,000
9,200
(3,600)
P155,600
Theories
1
.
2
.
3
.
4
.
5
.
6.
7.
8.
d*
9.
10
,
11
.
12
.
13
.
14
.
15
,
C*
*
b
d
c
c
16
.
17
.
18
.
19
.
20
.
c
c
d
d
b
21
.
22
.
23
.
24
.
25
.
d
a
b
c
c
26
.
27
.
28
.
29
.
30
.
31
32
.
33
.
34
.
35
.
c
c
b
c
c
d
36
.
37
.
38
.
39
.
40
.
d
b
b
c
d
41
.
42
.
43
.
44
.
45
.
a
c
a
*under PAS 27, cost model recognizes any dividend declared/paid by the subsidiary is classified as
income regardless of retained earnings balance, which means there is no such thing as liquidating
dividend under the cost model. On the other hand, under FASB ruling, a liquidating dividend still exists
under the cost method.
**partial equity is the same with equity method except that amortization of allocated excess is not
recognized in the investment and income account.

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1.

Full-Goodwill: (P600,000/70%) P640,000 = P217,143 P40,000 = P177,143

*Non-controlling Interest in Net Income (NCINI) for 20x4

*Non-controlling Interest in Net Income (NCINI) for 20x4

Combined revenues................................................................................ P1,100,000

d refer to No. 23 for further discussion.

Book value of Stockholders Equity of Subsidiary

Fair value of Stockholders Equity of Subsidiary. 12/31/x4

Book value of Stockholders Equity of Subsidiary

37. Podexs separate earnings for 20x6.............................................. P2,000,000

Plochmans acquisition entry is:

PIC in excess of par [(1,000,000 x P39) P800,000)

Eliminating entries are:

46. d refer to No. 45

Decrease in Buildings account:

Decrease in buildings account (refer to No. 73)

Decrease in buildings account (refer to No. 74)

Increase in Equipment account:

Increase in equipment account (refer to No. 76)

Increase in equipment account (refer to No. 77)

(P234,000/90%) (P160,000 + P80,000) = P20,000 (P4,000 P2,000 + P7,000) =

Partial or full-goodwill approach, the amortization remains the same.

Increase in patent account (refer to No. 85)

Increase in patent account (refer to No. 86)

86. a P48,000, parent only.

Less: Non-controlling Interest in Net Income*

Multiplied by: Non-controlling interest %..........

Noncontrolling Interests (in net assets):

*Net income of subsidiary 20x4

Noncontrolling Interest (in net assets), 12/31

P95,000 = (P956,000 / .80) - P1,000,000 - P100,000

P251,000 = .20[(P956,000 + P239,000) + (P190,000 - P5,000 - P125,000)]

100. b Combined revenues................................................................................. P1,300,000

NCI-CNI - P34,400; NCI P260,800

Fair value of non-controlling interest at acquisition date.........................

102. a MM trademark balance............................................................................

103. a Fair value of non-controlling interest on April 1.......................................

*P900,000/70% = P1,285,714 P1,000,000 = P285,714 P200,000 = P85,714, full goodwill

105. b (P50,000 + P70,000) x 25% = P30,000

{(P420,000/.7) + [P160,000 + P210,000 - P60,000 - P80,000 - P50,000 (P90,000/5)2]}.3

A summary or depreciation and amortization adjustments is as follows:

118. d 20x3: P30,000

available. Under the

account, December 31,

125. d CNI amounted to P265,000 [CI-CNI, P235,000 and NCI-CNI, P30,000

*Net income of subsidiary 20x4

20x5 results of operations are as follows:

Less: Book value of stockholders equity of Sea (P550,000 x

126. c refer to No. 125 for computations

the following rule should

129. c - P811,000 refer to note (b) of No. 128

Less: Dividends paid Parent Company for 20x5

132. d refer to No.131

Common stock Subsidiary Company, December 31, 2015

148. a P900,000 + P500,000 = P1,400,000

E - If cost model/cost method, the answer would be P100,000.

Net income of S (5/1/x5 12/31/x5): P840,000 x 8/12

{(P260,000 - P230,000) + [(P650,000 - P590,000)/120] 8}.8

[{(P84,000 + P105,000) - [(P310,000 - P220,000)/20]2} - (P30,000 + P50,000)].8