1. Beatty Inc.

and Gataux Company

503,461 = 500,000 + 3,461
2. Debit Contingent performance obligation 3,461, debit Loss from revaluation of contingent
performance obligation 8,539, and Credit Cash 12,000.
3. RR and SS Corporation
95,000 = (P956,000 / .80) - P1,000,000 - P100,000
4. 251,000 = .20[(P956,000 + P239,000) + (P190,000 - P5,000 - P125,000)]
5. PP Inc. and RR Corporation
Fair value of non-controlling interest on April 1 .................................................... P165,000
30% of net income for 9 months (¾ year×P240,000 × 30%)................................ 54,000
Non-controlling interest December 31 ................................................................... P219,000
6. Payne and Shayne Corp.
Non-controlling interest (full-goodwill), December 31, 20x4
Book value of SHE – S, 12/31/20x4 P1,000,000
Add: Net income of S – 20x4 150,000
Total P1,150,000
Less: Dividends paid – 20x4 90,000
Stockholders’ equity – S Company, December 31, Year 2 P1,060,000
Adjustments to reflect fair value - (over) undervaluation of assets and
liabilities, date of acquisition January 1, 20x4 200,000
Amortization of allocated excess (refer to amortization above: P200,000/10 (20,000)
Fair value of stockholders’ equity of subsidiary, December 31, 20x5…… P1,240,000
Multiplied by: Non-controlling Interest percentage…………... 30%
Non-controlling interest (partial) P372,000
Add: NCI on full-goodwill P85,714 – P60,000) 25,714
Non-controlling interest (full) P397,714

PP and KK Company
(P50,000 + P70,000) x 25% = P30,000
7. 100,000 NO SOLUTION
8. Powell Enterprises and Sullivan Company
(P250,000/.8) + [P75,000 + P90,000 - P25,000 - P50,000 - P30,000 - (P80,000/8)2]}.2 = 70,500
9. Photoplasm Corporation and Spectrum Company
{(P420,000/.7) + [P160,000 + P210,000 - P60,000 - P80,000 - P50,000 - (P90,000/5)2]}.3 =
223,200
10. Parrett Corp. And Jones Inc.
P: BV,12/31/20x6 P250,000
S:
BV of building, 12/31/20x4 P170,000
Add: Adjustments to reflect fair value, 1/1/20x4
(P350,000 – P240,000) 110,000
Less: Amortization of excess (P110,000/10) x 3 years 33,000 247,000
P497,000
11. Goehler and Kenneth Inc.
P: BV,12/31/20x5 P 975,000
S:
BV of building, 12/31/20x5 P105,000
Add: Adjustments to reflect fair value, 1/4/20x4
(P120,000 – P90,000) 30,000
Less: Amortization of excess (P30,000/10) x 2 years 6,000 129,000
P1,104,000

12. Watkins Inc. and Glen Corp.

BV of building, 1/1/20x4 P200,000
Adjustments to reflect fair value, 1/1/20x4 (P300,000 – P200,000) 100,000
Depreciation 1/1/20x4 – 12/31/20x6 (P100,000/20 x 3 years) (15,000)
P285,000
13. 285,000 SAME WITH NO. 12
14. BV of equipment, 1/1/20x4 P 80,000
Adjustments to reflect fair value, 1/1/20x4 (P80,000 – P75,000) (5,000)
Depreciation 1/1/20x4 – 12/31/20x6 (P5,000/10 x 3 years) 1,500
P 76,500
15. Adjustments to reflect fair value, 1/1/20x4 (P80,000 – P75,000) (P 5,000)
Depreciation 1/1/20x4 – 12/31/20x6 (P5,000/10 x 3 years) 1,500
(P 3,500)
16. BV of equipment, 1/1/20x4 P200,000
Adjustments to reflect fair value, 1/1/20x4 (P300,000 – P200,000) 100,000
P300,000
17. McGuire and Hogan Company
Fair value…………………………………………… P 8,000
Book value………………………………………….. 10,000
Decrease……………………………………………. P 2,000 decrease
18. Decrease in buildings account P 2,000
Less: Increase due to depreciation (P2,000/10)………… 200
Decrease in buildings accounts…………………………….. P 1,800 decrease
19. Decrease in buildings account P 1,800
Less: Increase due to depreciation (P2,000/10)………… 200
Decrease in buildings accounts…………………………….. P 1,600 decrease
20. Fair value…………………………………………… P 14,000
Book value………………………………………….. 18,000
Increase……………………………………………. P 4,000 increase
21. Increase in equipment account (refer to No. 76)………… P 4,000
Less: Decrease due to depreciation (P4,000/4)…………… 1,000
Increase in equipment accounts…………………………….. P 3,000 increase
22. Increase in equipment account (refer to No. 77)………… P 3,000
Less: Decrease due to depreciation (P4,000/4…………… 1,000
Increase in equipment accounts…………………………….. P 2,000 increase
23. Fair value……………………………………………P 12,000
Book value………………………………………….. 5,000
Increase…………………………………………….. P 7,000 increase
24. 7,000 increase
25. 7,000 increase
26. 11,000
27. Increase in patent account (refer to No. 159)……………… P 11,000
Less: Decrease due to depreciation (P11,000/5).………… 2,200
Increase in patent accounts…………………………………. P 8,800
28. Increase in patent account (refer to No. 160)……………… P 8,800
Less: Decrease due to depreciation (P11,000/5).………… 2,200
Increase in patent accounts…………………………………. P 6,600
29. Park and Southwestern Company
equivalent to consideration transferred, P320,000
30. equivalent to consideration transferred, P380,000
31. 25,000 NO SOLUTION
32. Podex and Sodex
Podex’s separate earnings for 20x6 ..................................................... P2,000,000
Dividend income from Sodex................................................................ 120,000
Podex’s 20x6 net income ....................................................................... P2,120,000
33. Podex’s separate earnings for 20X6 P2,000,000
Podex’s equity in net income of Sodex............................................... 300,000
Less: Amortization of cost in excess of book value ........................... (40,000)
Podex’s 20x6 net income ....................................................................... P2,260,000
34. Dr. Dividend Income 80,000
Cr. Dividends declared 80,000
35. Retained earnings of Parent, 12/31/20x6, Cost Method 310,000
Add: Increased in Retained earnings of Subsidiary 80,000
RE of Parent, 12/31/20x6, Equity Method (same with Consolidated RE) 390,000
36. Investment balance 12/31/x6, Cost Method 200,000
Add: Increased in Retained earnings of Subsidiary 80,000
Investment balance 12/31/x6, Equity Method 280,000
37. Retained earnings of Parent, 12/31/20x6, Cost Method 210,000
Add: Increased in Retained earnings of Subsidiary 240,000
RE of Parent, 12/31/20x6, Equity Method (same with Consolidated RE) 450,000
38. 75,000 – 15,000 = 60,000
39. Peters and Smith Company
64,000 – 1,600 + 24,000 = 86,400
40. 37,500 – 4,000 = 33,500
41. 129,000 + 22,400 = 151,4000
42. 161,500 + 18,400 = 179,900
43. 360,000 – 40,000 = 320,000
44. RR Corp. and JJ Inc.
 20x3: 22,500; 20x4: 30,000
45. 20x3: 150,000; 20x4: 150,000
46. Plimsol and Shipping Corp.
70,000 + 40,000 = 110,000
47. Plimsol: P100,000 + P200,000 P300,000
Shipping: P75,000 + P150,000 225,000
P525,000
48. 150,000 + 110,000 – 25,000 = 235,000
49. Plimsol (P40,000 + P75,000) P115,000
Shipping (P25,000 + P50,000) 75,000
P 190,000
50. Total assets P525,000
Les: Liabilities 190,000
Stockholders’ equity P335,000
51. Parent and Subsidiary
Consideration Transferred (5,400 shares) P120,600
Less: Book value of SHE-S, 1/1:
Common stock – S: P50,000 x 90% P 45,000
APIC – S: P15,000 x 90% 13,500
RE – S: P41,000 x 90% 36,900 95,400
Allocated Excess P 25,200
Less: Over/undervaluation of A & L:
Increase in Inv. (P17,100–P16,100) x 90% P 900
Increase in Eqpt. (P48,000–P40,000) x 90% 7,200
Increase in Patents (P13,000–P10,000) x 90% 2,700 10,800
Positive Excess: Goodwill P 14,400
52. Common stock – S P 50,000
APIC – S 15,000
RE – S 41,000
Stockholders’ equity – Subsidiary, 1/1 P106,000
Add: Adjustments to reflect fair value 12,000
Fair value of Stockholders’ Equity – S, 1/1 P118,000
x: non-controlling) interests 10%
Non-controlling Interests (in net assets) P 11,800
53. 48,000, parent only.
54. P48,000. On the date of acquisition, the parent’s retained earnings is also the consolidated
retained earnings
55. P120,600, the initial value
56. P4,000 x 90% = P3,600
57. Net income of subsidiary – 20x4 P 9,400
Amortization of allocated excess – 20x4 (3,300)
P 6,100
Multiplied by: Non-controlling interest %.......... 10%
P 610
Less: Non-controlling interest on impairment loss on full-goodwill 0
Non-controlling Interest in Net Income (NCINI) P 610
58. Common stock - S, 12/31 P 50,000
Additional paid-in capital - S, 12/31 15,000
Retained earnings - S, 12/31:
RE-S, 1/1/2011 P 41,000
Add: NI-S, 2011 9,400
Less: Dividends – S 4,000 46,400
Book value of SHE - S, 12/31 P 111,400
Add: Adjustments to reflect fair value, 1/1 12,000
Less: Amortization of allocated excess (1 yr.) 3,300
Fair Value of Net Assets/SHE - S, 12/31 P 120,100
x: Noncontrolling Interest % 10%
Noncontrolling Interest (in net assets), 12/31 P 12,010
59. Net income from own/separate operations
CompanyP30,200 – (P4,000 x 90%) P26,600
S Company 9,400
Total P36,000
Less: Non-controlling Interest in Net Income* P 610
Amortization of allocated excess 3,300
Goodwill impairment ____ 0 3,910
Controlling Interest in Consolidated Net Income or Profit
attributable to equity holders of parent………….. P32,090
60. Net income from own/separate operations
CompanyP30,200 – (P4,000 x 90%) P26,600
S Company 9,400
Total P36,000
Less: Non-controlling Interest in Net Income* P 610
Amortization of allocated excess 3,300
Goodwill impairment ____ 0 3,910
Controlling Interest in Consolidated Net Income or Profit
attributable to equity holders of parent………….. P32,090
Add: Non-controlling Interest in Net Income (NCINI) 610
Consolidated Net Income for 20x4 P32,700
61. Controlling RE / RE Attributable to EH of Parent, 1/1 (refer to No. 102 P 48,000
Add: CI – CNI (refer to 168) 32,090
Less: CI – Dividends (Dividend of parent only) 15,000
Controlling RE / RE Attributable to EH of Parent, 12/31 P 65,090
62. 65,090
63. Common stock – P: [P100,000 + P120,600 – (5,400 shares x P10 par)] P154,000
APIC – P: [15,000 + [P120,600 – (5,400 x P10)] 81,600 RE – P (refer to No. 172) 65,090
Parent’s Stockholders Equity or Controlling Interest – Equity P300,690
Noncontrolling Interest 12,010
Consolidated Equity P312,700
64. Prime Industries and Sands Company
P60,000 x 80% = P48,000
65. Investment.1/1/20x4 P105,000
Add: Share in net income – 20x4 (P45,000 x 80%) 36,000Less: Dividends received 12,000
Investment, 12/31/20x4 P129,000
Add: Share in net income – 20x5 (P60,000 x 80%) 48,000
Less: Dividends received 18,000
Investment, 12/31/20x5 P159,000
66. Investment. 4/1/20x6 P500,000
Add: Share in net income – 20x6
(3 quarters x P30,000 x 90%) 81,000
Less: Dividends declared of Satz (3 quarters x P10,000 x 90%) 27,000
Amortization (the recorded amount which means it represents
only 9 months, no need to pro-rate) 10,000
Investment, 12/31/20x6 P544,000
67.