Calculate the consolidated net income

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Reference no: EM133208306

Problem

On January 1, 2014, Subsidiary Company purchased a delivery truck with an expected useful life of 5 years. On January 1, 2016, Subsidiary Company sold the truck to Parent Company and recorded the following entry:

Dr. Cash 43,800
Dr. Accumulated depreciation 21,200
Cr. Truck 53,000
Cr. Gain on sale of truck 12,000

Parent holds 60% of Subsidiary's voting shares. Subsidiary reported net income of P55,000 and Parent reported separate net income of P98,000 for 2016. Parent Company continued the method used by Subsidiary Co. in recording the depreciation expense and the same remaining life. Calculate the consolidated net income for 2016.

Reference no: EM133208306

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