Reference no: EM132846421
Question - On January 2, 2014, P Company acquired 80% interest in S Company for P2,062,500 cash. On this date the outstanding capital stock and retained earnings of P Company and S Company are as follows:
P Company
Common Stock -1,125,000
APIC- 750,000
Retained earnings- 2,625,000
S Company
Common Stock - 656,000
APIC - 0
Retained Earnings -1,593,750
There was no issuance of capital stock during the year. Non-controlling interest is measured at its fair value. Fair values of the following assets exceeded their book values as follows: Inventories, P105,000; Property and equipment (useful life, 10 years), P63,750. All other assets and liabilities are fairly valued. Goodwill if any is not impaired. On December 31, 2011 the two companies reported the following operating results:
P Company
Net income -892,500
Dividends paid- 262,500
S Company
Net income- 487,500
Dividends Paid-131,250
Required -
1. What is the consolidated net income attributable to parent on December 31, 2014?
2. What is consolidated stockholders' equity to be reported in the consolidated statement of financial position on December 31, 2014?