How much is the non-controlling interest

Assignment Help Accounting Basics
Reference no: EM133036594

Problem - On Jan 1, 20X8, Banawe Company purchased 80% of the outstanding shares of Malate Company at a cost of P4,000,000. On that date, Malate had P2,500,000 of capital stock and P3,500,000 of retained earnings. For 20X8, Banawe had income of P1,400,000 form its separate operations and paid dividends of P750,000. Malate on the other hand reported income of P325,000 and paid dividends of P150,000 on December 1, 20X8. All the assets and liabilities of Malate have book values equal to their fair market values. Assume all income was earned evenly throughout the year except for an intercompany transaction on October 1, 20X8 when Banawe purchased a machinery from Malate for P500,000. The book value of the machinery on that date amounted to P600,000 and accumulated depreciation of P400,000 and is already reflected in the income of Malate indicated above. The machinery is expected to have a remaining useful life of 5 years from the date of sale. In the December 31, 20X8 consolidated financial statements,

Required -

1) How much is the consolidated net income attributable to the parent company?

2) How much is the non-controlling interest?

Reference no: EM133036594

Questions Cloud

Discuss the usefulness of market segmentation : Discuss the usefulness of market segmentation. What are the major categories of market segmentation?Provide five (5) examples of each category.
Case study-hewlettpackard and polaroid : Founded in the late 1930s, both Hewlett-Packard (HP) and Polaroid grew to become the technology titans of the 20th Century with their numerous innovations. Whil
How much will ron have after taxes when money is withdrawal : He anticipates that his income tax rate will be 15% when he withdraws the money. How much will Ron have after taxes when the money is withdrawn
Calculate confusion matrix : Calculate (on paper) confusion matrix, precision and recall for the given dataset under threshold of 0.5: True class Prediction 1. 1 0.6 2. 1 0.8 3. 0 0.4 4. 1
How much is the non-controlling interest : Banawe Company purchased 80% of the outstanding shares of Malate Company at a cost of P4,000,000. How much is the non-controlling interest
Disadvantages of global matrix organisational structure : You are currently employed as a mid-tier manager at a large multi-national entity. Last week, you heard that your company is being acquired by a competitor from
Consumer behaviour report assignment : Consumer Behaviour Report - Evaluate appropriate forms of research to understand influences on the decision -making process (B2C and B2B)
Determine the minimum value of the bond : Ten years ago, Rossie Bhd had issued RM1,000 par value, 8% convertible bonds with a maturity period of 15 years. Determine the minimum value of the bond
Income inequality in the us economy : Given the change in the standard deviation of Per Capita Income over these two years and the percentiles of per capita income for Per Capita Income 1, what do y

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd