Please find the following:
- Consolidated Net Income
- Controlling interest in consolidated net income
- Non-controlling interest in Subsidiary's Net Income
- Inventory
- Cost of goods sold
PROBLEM 3: The income statement of Pedro and Penduko is as follows:
Pedro Penduko
Year 1 Year 2 Year 1 Year 2
432,000 504,000 420,000 456,000
72,000 72,000 84,000 84,000
1,800,000 ? 1,320,000 ?
Net income, per books, earned evenly
Dividend declared, February 1
Retained earnings, beginning
Pedro has the controlling interest of 80%.
In Year 1, the intercompany seller sold land costing P500,000 to the intercompany buyer.
In Year 2, the intercompany buyer sold the land to an unrelated party with a gain of P30,000.