Reference no: EM133150154
Question - On January 1, 2022, Sun Company acquired 85% of outstanding shares of Moon Corp. The consideration transferred includes cash payment of P2,000,000 and issuance of 50,000 shares with a market price of P45 per share.
The book value of Moon Corp.'s identifiable net assets approximate its fair value, except for the following:
Merchandise inventory's fair value is lower than the book balance by 150,000.
Equipment-A, with 2 years remaining useful life, costing P300,000 is understated by P50,000.
Land with a fair value of P500,000 is recognized in the books amounting to P350,000.
The following events happened to Moon Corp.
Equipment-A was sold in June 30, 2023 for P320,000.
60% of merchandise inventory were sold in 2022.
There is no movement as to the ordinary shares of MoonCorp during the year.
The unadjusted trial balance as of December 31, 2022 were as follows:
|
Sun Company
|
Moon Corp
|
|
Cash
|
2,240,000
|
1,800,000
|
|
Trade Receivables
|
1,000,000
|
960,000
|
|
Merchandise Inventory
|
2,320,000
|
740,000
|
|
Furniture, net
|
820,000
|
540,000
|
|
Equipment, net
|
1,540,000
|
660,000
|
|
Land
|
880,000
|
3,000,000
|
|
Trademark, net
|
60,000
|
240,000
|
|
Investment in Moon
|
4,250,000
|
|
|
Cost of Good Sold
|
5,500,000
|
3,840,000
|
|
Expenses
|
3,240,000
|
1,620,000
|
|
Dividends Declared
|
1,280,000
|
1,920,000
|
|
TOTAL
|
23,130,000
|
15,320,000
|
|
Liabilities
|
1,570,000
|
1,700,000
|
|
Ordinary shares
|
3,600,000
|
2,700,000
|
|
Retained Earnings 1/02/22
|
5,200,000
|
1,860,000
|
|
Sales
|
10,730,000
|
7,940,000
|
|
Gain on sale of furniture
|
50,000
|
120,000
|
|
Dividend Income
|
1,980,000
|
1,000,000
|
|
TOTAL
|
23,130,000
|
15,320,000
|
Goodwill, if any, is impaired by 100,000 in 2022.
1. How much is the consolidated net income attributable to parent in December 31, 2022?
a. 5,397,000
b. 5,428,875
c. 5,418,250
d. 5,386,375
2. How much is the consolidated net income attributable to non-controlling interest In December 31, 2022?
a. 531,000
b. 536,625
c. 529,125
d. 534,750
3. How much is the consolidated shareholder's equity as of December 31, 2022?
a. 12,938,250
b. 13,935,000
c. 10,335,000
d. 15,215,000
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