Problem 4 On January 1, 2021, Pure Company acquired 80% interest in Sure Company for P2,000,000 cash. The stockholders’

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Problem 4
On January 1, 2021, Pure Company acquired 80% interest in Sure Company for P2,000,000 cash. The stockholders’ equity of Sure at the time of acquisition is P1,875,000. On January 1, 2021, NCI is measured at its implied fair value. The excess of cost over the book value of interest acquired is allocated to the following assets:
Inventories
P100,000 (sold in 2021)
Building
P200,000 (5-year remaining life
During 2021 Sure Company reported total comprehensive income of P500,000 and paid dividends of P100,000.
9. What is the fair value on NCI on January 1, 2021? 500,000
Inventories
P100,000 (sold in 2021)
Building
P200,000 (5-year remaining life)10. How much goodwill (gain on acquisition) is reported in the consolidated statement of financial of financial position on January 1, 2021?
11.What is the consolidated total comprehensive income attributable to a parent on December 31, 2021, if Pure’s net income for 2016 is P600,000?
12. What is the NCI in net assets of subsidiary on December 31, 2021?