Reference no: EM132973120

Questions -

Q1. On January 1,2021 ABC acquired 90% of DEF. Analysis of data relative to this purchase indicated that goodwill of P70,000 was acquired in this purchase. The goodwill in unimpaired. On July 1,2021, DEF sold a patent to ABC. The sales price was P140,000. DEF's book value was P70,000. DEF estimated that the patent has a life of 5 years and no salvage value. It will use straight line depreciation. For 2023, ABC's net income is P560,000 from its own operations. DEF had net income of P140,000. What the 2023 net income attributable to equity holders of ABC?

Q2. On January 1,2020, ABC Co. acquired 70% of DEF Inc. at book value. On December 31,2021 DEF sold a machine to DEF for P112,500. The machine on DEF's books has a book value of P75,000. ABC will use a 10-year life, no salvage value, and straight-line depreciation. For 2021, DEF reports net income of P137,500. Compute the non-controlling interest in net income of subsidiary?