Enrichment Learning Activity: Name: Date: Year and Section: Instructor: Module #: Topic
Enrichment Learning Activity: Name: Date: Year and Section: Instructor: Module #: Topic
Directions: ANSWER PROBLEM 1MULTIPLE CHOICE ON YOUR BOOK NOS. 1-8 pp 358-360 (Show your solutions)
1. In Owen’s December 31, 1993 consolidated balance sheet, what amount should be reported as total retained
earnings? 1,240,000
If the investment in the subsidiary is determined using the equity method, the consolidated retained earnings are
the same as the parent's retained earnings.
2. What should Dallas report as earnings from subsidiary, in its 1991 income statement? 16,000
3. How much is the acquisition cost of the investment on January 1 1991? 120,000
Investment in subsidiary
Initial cost 120,000
Share in profit of subsidiary 16,000 Dividends received 4,000
Share in the amortization of
undervaluation of assets -
December 31 1991 132,000
5. How much is the non-controlling interest in the net asset of Style on December 31,1991? 23,000
115,000*20%= 23,000
6. How much is the consolidated retained earnings on December 31, 1991? 139,750
7. How much is the total assets in the consolidated statement of financial position as of December 31, 1991?
293,000
8. What amount of equity attributable to the owners of the parent should be reported in the Dallas December
31, 1991 consolidated balance sheet? 270,000