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Q1. ABC Company is an 80% subsidiary of XYZ Corporation. ABC sells P93,000 of inventory for P125,000 to XYZ on December 23, 20x5. None of this inventory was sold to unrelated parties by the end of 20x5. During 20x6, 70% of this inventory is sold to unrelated parties for P170,000. ABC and XYZ have net income in 20x6 of P293,000 and P802,000 respectively. What is the amount of net income to non-controlling interest in 20x6?
Q2. ABC Company is an 80% subsidiary of XYZ Corporation. ABC sells P93,000 of inventory for P125,000 to XYZ on December 23, 20x5. None of this inventory was sold to unrelated parties by the end of 20x5. During 20x6, 70% of this inventory is sold to unrelated parties for P170,000. ABC and XYZ have net income in 20x6 of P293,000 and P802,000 respectively. What is the amount of elimination to sales when the 20x6 consolidated financial statements are prepared?
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