Investment Share in NI Others

P6-3
Investment 3,000,000.00
Cash - 3,000,000.00

Investment 137,000.00
Share in net income - 137,000.00

December 31 2016 3,137,000.00 - 137,000.00

Investment 53,600.00
Share in net income - 53,600.00

Cash 16,000.00
Innterest income - 16,000.00

December 31 2017 3,174,600.00 - 53,600.00

P6-4 Investment Share in NI Others

Investment 2,700,000.00
Cash - 2,700,000.00
 Investment 72,000.00
Share in net income - 72,000.00

December 31 2016 2,772,000.00 - 72,000.00

Investment 351,000.00
Share in net income - 351,000.00

Cash 180,000.00
Investment - 180,000.00

December 31 2017 2,943,000.00 - 351,000.00

P6-5 Investment Share in NI Others

Investment 580,000.00
Cash - 580,000.00
 2014-2015
Investment 5,800.00
Share in net income - 5,800.00

December 31 2015 585,800.00 - 5,800.00

Investment 63,800.00
Share in net income - 63,800.00

December 31 2016 649,600.00 - 63,800.00

P6-6 Investment Share in NI Others

Investment 15,000,000.00
Cash - 15,000,000.00

Investment - 975,000.00
Share in net income 975,000.00

December 31 2019 14,025,000.00 975,000.00

 Investment 1,380,000.00
Share in net income - 1,380,000.00

Cash 1,000,000.00
Investment - 1,000,000.00

December 31 2020 14,405,000.00 - 1,380,000.00

Investment Share in NI Others

P6-7
Investment 108,000.00
Cash - 108,000.00

Investment - 12,400.00
Share in net income 12,400.00

December 31 2018 95,600.00 12,400.00

Investment 42,000.00
Share in net income - 42,000.00
 Cash 16,000.00
Investment - 16,000.00

December 31 2019 121,600.00 - 42,000.00

P6-8 Investment Share in NI Others

Investment 290,000.00
Cash - 290,000.00

Investment 5,400.00
Share in net income - 5,400.00

December 31 2015 295,400.00 - 5,400.00

Investment 34,400.00
Share in net income - 34,400.00

December 31 2016 329,800.00 - 34,400.00

P5-4
P5-9 Investment Share in NI Others

Investment 4,320,000.00
Cash - 4,320,000.00

Investment 180,000.00
Share in NI - 180,000.00

Investment 216,000.00
Share in NI - 216,000.00

December 31 2018 4,716,000.00 - 396,000.00

Investment 1,728,000.00
Share in NI - 1,728,000.00

Cash 900,000.00
Investment - 900,000.00

December 31 2019 5,544,000.00 - 1,728,000.00

Common stock 2,500,000.00
Retained earnings 500,000.00
3,000,000.00
Ownership 80%
2,400,000.00
Fair value of consideration transferred 3,000,000.00
Goodwill 600,000.00

80%
Retained earnings, Jan 1 2017 726,250.00
Pre-acquisition RE 500,000.00
Post acquisition RE 226,250.00 181,000.00
Intercompany gain, land
Proceeds 150,000.00
BV of land sold 100,000.00
- 50,000.00 - 40,000.00
Intercompany profit, inventory - 5,000.00 - 4,000.00
171,250.00 137,000.00

80%
Net income, 2017 80,000.00 64,000.00
Intercompany gain, equipment
Proceeds 60,000.00
BV of equipment sold 50,000.00
- 10,000.00 - 8,000.00
Depreciation adjustment for 2017 2,000.00 1,600.00
Intercompany profit, inventory, 2016 5,000.00 4,000.00
Intercompany profit, inventory, 2017 - 10,000.00 - 8,000.00
67,000.00 53,600.00

Dividends declared, 2017 20,000.00

Ownership 80%
16,000.00

Common stock 1,500,000.00

Retained earnings 900,000.00
2,400,000.00
Ownership 90%
2,160,000.00
Fair value of consideration transferred 2,700,000.00
Patent 540,000.00 10.00 years

90%
Retained earnings, Jan 1 2017 1,200,000.00
Pre-acquisition RE 900,000.00
Post acquisition RE 300,000.00 270,000.00
Patent amortization - 54,000.00
Intercompany profit, inventory - 100,000.00 - 90,000.00
Intercompany gain, equipment
Proceeds 350,000.00
BV of equipment sold 280,000.00
- 70,000.00 - 63,000.00
Depreciation adjustment for 2016 10,000.00 9,000.00
72,000.00

90%
Net income, 2017 500,000.00 450,000.00
Patent amortization - 54,000.00
Intercompany profit, inventory, 2016 100,000.00 90,000.00
Intercompany profit, inventory, 2017 - 120,000.00 - 108,000.00
Depreciation adjustment for 2017 20,000.00 18,000.00
Intercompany gain, land
Proceeds 200,000.00
BV of equipment sold 150,000.00
- 50,000.00 - 45,000.00
351,000.00

Dividends declared, 2017 200,000.00

Ownership 90%
180,000.00

Common stock 600,000.00

Retained earnings -
600,000.00
Ownership 80%
480,000.00
Fair value of consideration transferred 580,000.00
Excess 100,000.00
Allocation
Inventories 50,000.00
Patent 50,000.00 10.00 years

80%
Retained earnings, Jan 1 2016 100,000.00
Pre-acquisition RE -
Post acquisition RE 100,000.00 80,000.00
Adjustments from date of acquisition
Inventory - 50,000.00
Patent amortization, 2014-2015 - 5,000.00
Intercompany gain, equipment
 Proceeds 50,000.00
BV of equipment sold 20,000.00
- 30,000.00 - 24,000.00
Depreciation adjustment for 2015 6,000.00 4,800.00
5,800.00

80%
Net income, 2016 100,000.00 80,000.00
Patent amortization - 5,000.00
Intercompany profit, inventory, 2016 - -
Depreciation adjustment for 2016 6,000.00 4,800.00
Intercompany gain, land - 20,000.00 - 16,000.00
63,800.00

Common stock 5,000,000.00

Retained earnings 2,000,000.00
7,000,000.00
Excess of fv over bv
Inventory 500,000.00
Buildings 3,500,000.00 500,000.00
11,000,000.00
Ownership 100%
11,000,000.00
Fair value of consideration transferred 15,000,000.00
Goodwill 4,000,000.00

Retained earnings, Jan 1 2020 4,000,000.00

Pre-acquisition RE 2,000,000.00
Post acquisition RE 2,000,000.00
Adjustments from date of acquisition
Inventory - 500,000.00
Building depreciation (April 2016 - Dec 2019) - 1,875,000.00
Intercompany sale of land
Proceeds 1,500,000.00
Book value 1,000,000.00 - 500,000.00
Intercompany sale of inventory
Proceeds 1,000,000.00
Book value 600,000.00
Unsold as of year end 2019 25% - 100,000.00
- 975,000.00

Net income, 2020 2,000,000.00

Adjustments from date of acquisition
Building depreciation (2020) - 500,000.00
Intercompany sale of inventory, 2019 100,000.00
Intercompany sale of inventory, 2020
 Proceeds 1,500,000.00
Book value 900,000.00
Unsold as of year end 2020 20% - 120,000.00
Intercompany sale of land, realized in 2020 500,000.00
Intercompany sale of equipment
Proceeds 1,600,000.00
Book value 800,000.00 - 800,000.00
Depreciation adjustment for 2020 200,000.00
1,380,000.00

Capital stock 100,000.00

Retained earnings 10,000.00
BV of INA 110,000.00
Ownership 80%
88,000.00
Fair value of consideration transferred 108,000.00
Patent 20,000.00 10.00 years

80%
Retained earnings, Jan 1 2019 20,000.00
Pre-acquisition RE 10,000.00
Post acquisition RE 10,000.00 8,000.00
Excess of fv over bv
Patent amortization, 2016-2018 - 6,000.00
Intercompany gain, inventory - 2,000.00 - 1,600.00
Intercompany gain, plant assets
Proceeds 60,000.00
BV of plant assets sold 40,000.00
- 20,000.00 - 16,000.00
Depreciation adjustment for 2018 4,000.00 3,200.00
- 12,400.00

80%
Net income, 2019 50,000.00 40,000.00
Excess of fv over bv
Patent amortization, 2019 - 2,000.00
Intercompany transactions
Intercompany gain, inventory, 2019 2,000.00 1,600.00
Intercompany gain, inventory, 2020 - 1,000.00 - 800.00
Depreciation adjustment for 2019 4,000.00 3,200.00
42,000.00
Dividends declared, 2019 20,000.00
Ownership 80%
16,000.00

Capital stock 300,000.00

Retained earnings -
BV of INA 300,000.00
Ownership 80%
240,000.00
Fair value of consideration transferred 290,000.00
Excess 50,000.00
Allocation
Inventories 25,000.00
Goodwill 25,000.00

80%
Retained earnings, Jan 1 2016 50,000.00
Pre-acquisition RE -
Post acquisition RE 50,000.00 40,000.00
Excess of fv over bv
Inventories - 25,000.00
Intercompany transactions
Intercompany gain, equipment
Proceeds 25,000.00
BV of equipment sold 10,000.00
- 15,000.00 - 12,000.00
Depreciation adjustment for 2015 3,000.00 2,400.00
5,400.00

80%
Net income, 2016 50,000.00 40,000.00
Intercompany transactions
Depreciation adjustment for 2016 3,000.00 2,400.00
Intercompany gain, land - 10,000.00 - 8,000.00
34,400.00

2016 2017 2018

Son Net Income 4,800,000.00 5,400,000.00 4,200,000.00

Intercompany transaction
Gross profit: Pop --> Son 2,400,000.00
Unsold as of Dec 31 2016 50% - 1,200,000.00 1,200,000.00
Gross profit: Son --> Pop 1,200,000.00 - 1,200,000.00 1,200,000.00
3,600,000.00 5,400,000.00 5,400,000.00
Share in net income 75% 2,700,000.00 4,050,000.00 4,050,000.00

Capital stock 4,000,000.00

Retained earnings 1,000,000.00
BV of INA 5,000,000.00
Ownership 90%
4,500,000.00
Fair value of consideration transferred 4,320,000.00
Gain on bargain purchase - 180,000.00

90%
Retained earnings, Jan 1 2019 1,400,000.00
Pre-acquisition RE 1,000,000.00
Post acquisition RE 400,000.00 360,000.00
Intercompany transactions
Inventory from interco purchase, 2018 560,000.00
Gain - 160,000.00 - 144,000.00
216,000.00

90%

Net income 2,000,000.00 1,800,000.00

Intercompany transactions
Inventory, 2019 160,000.00 144,000.00
Inventory from interco purchase, 2019 840,000.00
Gain - 240,000.00 - 216,000.00
1,728,000.00

Dividends declared, 2019 1,000,000.00

Ownership 90%
900,000.00
 80%
Common stock 2,500,000.00
Retained earnings 786,250.00
3,286,250.00 2,629,000.00
Unrealized gain
Land - 50,000.00
Equipment - 8,000.00
Inventory - 10,000.00
- 68,000.00 - 54,400.00
Goodwill 600,000.00
Investment 3,174,600.00
 90%
Common stock 1,500,000.00
Retained earnings 1,500,000.00
3,000,000.00 2,700,000.00
Unrealized gain
Land - 50,000.00
Equipment - 40,000.00
Inventory - 120,000.00
- 210,000.00 - 189,000.00
Unamortized patent 432,000.00
Investment 2,943,000.00

80%
Common stock 600,000.00
Retained earnings 100,000.00
700,000.00 560,000.00
Unrealized gain
Land
Equipment - 24,000.00
Inventory -
 - 24,000.00 - 19,200.00
Unamortized patent 45,000.00
Investment 585,800.00 -

80%
Common stock 600,000.00
Retained earnings 200,000.00
800,000.00 640,000.00
Unrealized gain
Land - 20,000.00
Equipment - 18,000.00
Inventory -
- 38,000.00 - 30,400.00
Unamortized patent 40,000.00
Investment 649,600.00

Common stock 5,000,000.00

Retained earnings 4,000,000.00
9,000,000.00
Excess of fv over bv
Buildings 1,625,000.00
Unrealized gain on interco transactions
Land - 500,000.00
Inventory - 100,000.00 - 600,000.00
10,025,000.00
Goodwill 4,000,000.00
Investment 14,025,000.00

Common stock 5,000,000.00

Retained earnings 5,000,000.00
10,000,000.00
Excess of fv over bv
Buildings 1,125,000.00
Unrealized gain on interco transactions
Inventory, 2020 - 120,000.00
Equipment - 600,000.00
10,405,000.00
Goodwill 4,000,000.00
Investment 14,405,000.00

80%
Common stock 100,000.00
Retained earnings 20,000.00
120,000.00 96,000.00
Excess of fv over bv
Unamortized patent 14,000.00
Unrealized gain
Plant assets - 16,000.00
Inventory - 2,000.00
- 18,000.00 - 14,400.00

Investment 95,600.00

80%
Common stock 100,000.00
Retained earnings 50,000.00
150,000.00 120,000.00
Excess of fv over bv
Unamortized patent 12,000.00
Unrealized gain
Plant assets - 12,000.00
Inventory - 1,000.00
- 13,000.00 - 10,400.00
Investment 121,600.00

80%
Common stock 300,000.00
Retained earnings 50,000.00
350,000.00 280,000.00
Unrealized gain
Equipment - 12,000.00 - 9,600.00
270,400.00
Goodwill 25,000.00
Investment 295,400.00

80%
Common stock 300,000.00
Retained earnings 100,000.00
400,000.00 320,000.00
Unrealized gain
Equipment - 9,000.00 - 7,200.00
Land - 10,000.00 - 8,000.00
304,800.00
Goodwill 25,000.00
Investment 329,800.00
 90%
Common stock 4,000,000.00
Retained earnings 1,400,000.00
5,400,000.00 4,860,000.00
Unrealized gain
Inventory - 160,000.00 - 144,000.00
4,716,000.00

Investment 4,716,000.00

90%
Common stock 4,000,000.00
Retained earnings 2,400,000.00
6,400,000.00 5,760,000.00
Unrealized gain
Inventory - 240,000.00 - 216,000.00

5,544,000.00

Investment 5,544,000.00