Compute for the NCI on June 30,2023On June 30, 2021, ABC Co. acquired 75,000 of DEF Co.'s 100,000 outstanding shares with par value per share of P1 for P4 per share.At this time, DEF's shares have a quoted price of P3.50 per share and DEF's retained earnings is P80,000.Additional information:• DEF's total assets include land classified as investment property at a cost of P180,000. The land's fair values are P200,000 onacquisition date and P320,000 on June 30, 2023. DEF uses the cost model for its investment properties. However, the groupuses the fair value model.• On acquisition date, DEF's building classified as property, plant, and equipment had a fair value of P30,000 in excess of itscarrying amount. The building's remaining useful life is 5 years. The group uses the straight-line method of depreciation.• The current accounts on June 30, 2023 include intercompany receivables and payables of P10,000.• An impairment test on June 30, 2023 concluded that goodwill is impaired by P20,000.• NCl is measured at fair value.• There are no subsequent changes in DEF's outstanding shares.The June 30, 2023 individual financial statements of the entities show the following information:ABC Co.DEF Co.Total assets1,000,000500,000Total liabilities200,000300,000120,000100,000Share capitalRetained earnings500,0001,000,000280,000Total liabilities and equity500,000

Shares:- A firm’s total capital is divided into small equal units, these each units is known as a…

Answered: The June 30, 2023 individual financial…

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Accounting

The June 30, 2023 individual financial statements of the entities show the following information:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 11MCQ

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On June 30, 2021, ZAYN Co. acquired 75,000 of LIAM Co.'s 100,000 outstanding shares with par value per share of P1 for P4 per share.At this time, LIAM Co.'s, shares have a quoted price of P3.50 per share and LIAM's retained earnings is P80,000. Additional information: •LIAM's total assets include land classified as investment property at a cost of P180,000. The land's fair values are P200,000 on acquisition date and P320,000 on June 30, 2023. LIAM uses the cost model for its investment properties. However, the group uses the fair value model. •On acquisition date, LIAM's building classified as property, plant, and equipment had a fair value of P30,000 in excess of its carrying amount. The building's remaining useful life is 5 years. The group uses the straight line method of depreciation. •The current accounts on June 30, 2023, include intercompany receivables and payables of P10,000. •An impairment test on June 30, 2023 concluded that goodwill is impaired by P20,000. •NCI is measured…
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