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Pat Corporation

This document contains information about net income, dividends, and non-controlling interest (NCI) for a company. Net income for the period was P50,000. Dividends of P5,000 were declared. NCI is measured at fair value.

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Wawex Davis
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137 views2 pages

Pat Corporation

This document contains information about net income, dividends, and non-controlling interest (NCI) for a company. Net income for the period was P50,000. Dividends of P5,000 were declared. NCI is measured at fair value.

Uploaded by

Wawex Davis
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Net Income (or loss) P50,000

Dividends 5,000

NCI is measured at fair value.

16. If Power reported separate income from own operations of P120,000 for 2013, what is the

consolidated total comprehensive income for 2013?

a. P113,870

b. P 70,000

c. P115,370

d. P116,500

17. What is the NCI at December 31, 2013?

a. P149,600

b. P148,000

c. P 73,500

d. P151,370

18. On January 1, 2013 Pat Corporation acquired 1,200 shares of the outstanding capital stock

of Sub Company for P294,000. As of this date, the stockholders’ equity of Sub Company

consisted of capital stock, P100 par, P300,000, and retained earnings, P120,000. The

investment is accounted for by the equity method.


On July 1,2013, Pat Corporation sold 300 shares of its investment of Sub Company stock for

P45,000. Changes in the retained earnings account of Sub Company are as follows:

2012: Comprehensive income from operations P84,000


Cash dividend declared 63,000

2013: Comprehensive income from operations P10,500


Cash dividend declared 94,500
What is the balance of the investment in associate account on December 31,2013?

a. P520,275

b. P308,700

c. P213,100

d. P250,500

19. On January 1,2013, Pony Inc. purchased 40% of Sotto Company’s outstanding common

stock. On that date, the carrying amount of Sotto’s assets and liabilities approximated their fair

values. During 2013, Sotto paid P5,000 cash diidends to its stockholders. Summarized

statement of financial position for the two companies follows:

Pony Sotto

12/31/2013 12/31/2013 1/1/2013

Investment in Sony (Equity) P131,000

Other Assets Total 138,000 P115,000 P100,000


P269,000 P115,000 P100,000
Common stock P 50,000 P 20,000 P 20,000

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