Reference no: EM132741807
On January 1, 2014, Plow2 Company purchased an 75% interest in Slow2 Co. for P280,000. On this date, Slow2 Co. had Ordinary Share Capital of P100,000 and Retained Earnings of P50,000.
An examination of Slow2 Company's assets and liabilities revealed that book values were equal to market values all except plant and equipment (net) which had a book value of P200,000 and a market value of P250,000 and inventory which had a book value of P60,000 and a market value of P80,000. The plant and equipment had an expected remaining life of 5 years, and the inventory could all be sold in 2014.
Plow2 Company's income from its own operations was P90,000 in 2014 and P100,000 in 2015. Slow2 Co.'s income was P70,000 in 2014 and P60,000 in 2015. Slow2 Co. did not pay any dividends on either year. Goodwill impairment losses were P10,000 in 2014 and P15,000 in 2015.
Problem 1: Based on the consolidated financial statements: (Cost method and partial goodwill), what is the Net Income attributable to NCI (non-controlling interest) for 2014?