PROBLEM III. FNE Company (classified as SME) acquired 4,000 shares of the outstanding stock of HCYSYLM Company for P1,200,000 on January 1, 2019. FNE Company also paid P100,000 direct costs related to the combination. On this date, the stockholders' equity of HCYSYLM Company consisted of Capital Stock of P500,000 P100 par and Retained Earnings of P600,000. The carrying values of HCYSYLM Company's identifiable assets and liabilities are equal to their fair market values. At the end of the year, FNE Company reported net income of P300,000 and paid dividends of P250,000 while HCYSYLM Company reported net income of P200,000 and paid dividends of P10 per share. 1. The consolidated net income on December 31, 2019 is 2. The amount of Goodwill in the consolidated balance sheet is 3. The non-controlling interest in December 31, 2019 presented in the shareholders' equity of FNE is

PROBLEM III. FNE Company (classified as SME) acquired 4,000 shares of the outstanding stock of HCYSYLM Company for P1,200,000 on January 1, 2019. FNE Company also paid P100,000 direct costs related to the combination. On this date, the stockholders' equity of HCYSYLM Company consisted of Capital Stock of P500,000 P100 par and Retained Earnings of P600,000. The carrying values of HCYSYLM Company's identifiable assets and liabilities are equal to their fair market values. At the end of the year, FNE Company reported net income of P300,000 and paid dividends of P250,000 while HCYSYLM Company reported net income of P200,000 and paid dividends of P10 per share. 1. The consolidated net income on December 31, 2019 is 2. The amount of Goodwill in the consolidated balance sheet is 3. The non-controlling interest in December 31, 2019 presented in the shareholders' equity of FNE is

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 19E

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