Dingdong is a 90%-owned subsidiary of Marian Corporation, acquired at book value several

years ago. Comparative separate company income statements for these affiliated corporations
for 2016 are as follows:
Marian Corporation Dingdong Corporation
Sales P 1,500,000.00 P 700,000.00
Dividends Income 108,000.00 -
Gain on building 30,000.00 -
Total Income 1,638,000.00 700,000.00

Cost of Sales 1,000,000.00 400,000.00

Operating Expenses 300,000.00 150,000.00
Total Expenses 1,300,000.00 550,000.00

Net Income 338,000.00 150,000.00

On January 5, 2016, Marian Corporation sold a building with a 10-year remaining useful life to
Dingdong as a gain of P30,000. Dingdong Corporation paid dividends of P120,000 during 2016.

Answer the following questions with solution.

1.       The non-controlling interest in net income for 2016 (5 points):

2.       The profit attributable to equity holders of parent to controlling interests for 2016 (5
points):

3.       The consolidated/group net income for 2016 should be (5 points for answer and solution
and 5 points for clean comprehensive income with elimination paper):
Solution:
1. Net income 150,000
Dividends paid (120,000)
30,000
X .10
3,000

2. Net income 338,000

Dividend income (120,000x.90) (108,000)
230,000

3. Net income, parent 230,000

Net income, sub 27,000
Consolidated net income 257,000
Eliminating entry:
Dividend Income 108,000
NCI 12,000
Retained Earnings 120,000