Problem III

P (80%)
80% Consi transferred 810,000 Reported Net Income 356,250
20% NCI @ FV using CT 202,500 Adjustments:
CVNA of S - 825,000 Under dep. Exp
EXCESS 187,500 Adjusted NI - S
Goodwill - 37,500 Share of Parent 93,000
Allocated to dep. Asset 150,000 Impairment - 24,000
Remaining useful life 10 NIATP/NCINIS 425,250
Additional dep exp 15,000 Note: Dividends from S not deducted since net income reported by P is from
operations meaning, income from outside sources are not included.

Goodwill @ DOA 37,500

Godwill @Reporting date 7,500 Retained Earnings - P 1,950,000
Impairment 30,000 NIATP 425,250
Share of P 24,000 Dividends Declared - P - 172,500
Share of S 6,000 Conso Ret. Earnings 2,202,750

NCI beg 202,500 Ordinary share 1,312,500

NCINIS 17,250 Conso Ret. Earnings 2,202,750
Dividends declared - NCI NCINAS 208,500
45,000 / 80% x 20% - 11,250 Conso SHE 3,723,750
NCINAS 208,500
 S (20%)
131,250

- 15,000
116,250
- 93,000
- 6,000
17,250
e net income reported by P is from its OWN
e sources are not included.
PROBLEM IV
P (70%)
70% Consi transferred 11,200,000 Reported Net Income 560,000
30% NCI using CT 4,800,000 Adjustments:
CVNA (5M+6M+4M) - 15,000,000 over. COGS
EXCESS 1,000,000 over. Dep. Exp.
over. inventories 120,000 Adjusted NI - S
over.plant assets 200,000 Share of Parent 322,000
Goodwill 1,320,000 Dividends - 175,000
NIATP/NCINIS 707,000
over.plant assets 200,000
remaining life 5 NCI beg. 4,800,000
over. Dep. Exp 40,000 NCINIS 138,000
Div. dec. NCI
(175,000 / 70% *30%) - 75,000
NCINAS 4,863,000
 S (30%)
300,000

120,000
40,000
460,000
- 322,000

138,000
PROBLEM V
P (80%)
80% Consi transferred 4,125,000 Reported Net Income 1,785,000
20% NCI @ FV using CT 1,031,250 Adjustments:
CVNA of S (1,312+3,187.5) - 4,499,500 under. COGS
EXCESS 656,750 under. Dep. Exp.
under. Inventories - 210,000 Adjusted NI - S
under. P&E - 127,500 Share of Parent 601,800
Goodwill 319,250 Dividends - 210,000
NIATP/NCINIS 2,176,800
under. P&E - 127,500
remaining life 10 Retained Earnings - P 5,250,000
additional dep.exp. - 12,750 NIATP 2,176,800
Div. dec. - P - 525,000
NCI beg. 1,031,250 Conso Ret. Earnings 6,901,800
NCINIS 150,450
Div.dec. - NCI Ordinary Share 2,250,000
262,500 x 20% - 52,500 Share Premium 1,500,000
NCINAS 1,129,200 Conso Ret. Earnings 6,901,800
NCINAS 1,129,200
Conso SHE 11,781,000
 S (20%)
975,000

- 210,000
- 12,750
752,250
- 601,800
262,500 x 80%
150,450