Pansit owns 80% of the outstanding ordinary shares of Shanghai. On
January 5, 2025, Pansit sold a building costing 100,000 for 120,000 to
Shanghai. The building has a 10-year remaining useful life. Shanghai also
sold an equipment costing 80,000 for 50,000. The equipment has a
5-year remaining useful life. Net income of Pansit and Shanghai for 2025
amounts to 500,000 and 400,000 respectively while depreciation
expense of Pansit and Shanghai for 2025 amounts to 40,000 and
30,000 respectively. The depreciation method use will be straightline
depreciation method. Compute for the following:
a. Consolidated depreciation expense
b. Controlling and Noncontrolling Interest in the Net Income of Subsidiary
for 2026
c. Consolidated net income
d. Book value of the building on December 31, 2025 in the consolidated
financial statements
e. Book value of the equipment on December 31, 2025 consolidated
financial statements