Solution-Compute the consolidated net income attributable

Compute the consolidated net income attributable

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Reference no: EM132746175

Mortar Corp. owns 80% of Pestle Corp.'s ordinary shares. On March 31, 2020, there was an upstream sale of land for P800,000 with a recorded amount of P620,000. On June 1, 2020, there was a downstream sale of delivery equipment for P450,000 with a carrying amount of P300,000. The buying affiliate is to depreciate the acquired equipment over a five-year remaining life by the straight-line method. On the other hand, on September 30, 2021, there was an upstream sale of a slightly used computer for P85,000 with carrying value of P100,000 and remaining life of 3 years.

The following questions pertain to this problem:

Problem 1: The net adjustment to compute the 2020 consolidated net income would be an increase (decrease) of:

A) P315,000
B) P(312,500)
C) P267,500
D) P(276,500)

Problem 2: The net adjustment to compute the 2021 consolidated net income attributable to controlling interest would be an increase (decrease) of:

A) P(136,250)
B) P(103,000)
C) P43,750
D) P41,000

Reference no: EM132746175

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Compute the consolidated net income attributable

Reference no: EM132746175

Reference no: EM132746175

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