On January 5, 2008, Grace Co. purchased 70% of the outstanding shares of Leo Co. at a cost of P500,000. On that date, the outstanding ordinary shares of Leo had a P700,000 balance, while accumulated profits had a P100,000 balance. All the book values of assets and liabilities of Leo approximated their fair values except for an equipment which was understated by P50,000
For the year 2008, Grace sold an equipment to Leo reporting a gain on sale of P25,000 on July 1, 2008 and Leo, on the other hand, sold a machine to Grace reporting a loss of P10,000 on October 1, 2008. Grace reported net income of P250,000 and declared dividends of P40,000 and reported an accumulated profits balance as of December 31, 2008 of P350,000. Leo reported net income for the year of P150,000 and declared dividends of P20,000. The remaining useful lives of the plant assets as of January 1, 2008 for both companies are 4 years for machinery and 5 years for equipment.
Required:
From the above data, determine:
- The net income attributable to equity holders of the parent for 2008.
- The non-controlling interest net income in Leo Co. for 2008.
- The consolidated net income of Grace Co. for 2008.
- The consolidated accumulated profits as of December 31, 2008.
