Reference no: EM133136379

Question - On January I, 2016, Rapids Company purchased 80% of the outstanding shares of Mock Corporation at book value. The stockholders' equity of Mock Corporation on this date showed: Ordinary shares - P4,560,000 and Retained earnings - P3,920,000. On April 30, 2016, Rapids Company acquired a used machinery for P672,000 from Mock Corp. that was being carried in the latter's books at P040, 000. The asset still has a remaining useful life of 5 years. On the other hand, on August 31, 2016, Mock Corp. purchased an equipment that was already 20% depreciated from Rapids Co. for P2,760,000. The original cost of this equipment was P3,000,000 and had a remaining life of 8 years. Net Income of Rapids Co. and Mock Corp. for 2016 amounted to 192,860,000 and P 1,240,000. Dividends paid totaled to P920,000 and P420,000 for Rapids Co. and Mock Corp., respectively.

Required - What is the net income in the consolidated financial statements in 2016?