Reference no: EM132978729

Questions-

Q1. On January 1,2021, ABC purchased 80% of the outstanding shares of DEF at a cost of P960,000. On that date, DEF had P600,000 worth of outstanding shares and P600,000 worth of accumulated profits. For 2021, ABC had an income of P336,000 from its own operations and paid dividends of P180,000. For 2021, DEF reported income of P64,000 and paid dividends of P36,000. All of the assets and liabilities of DEF have book values equal to their market value. On January 1,2021, ABC sold an equipment to DEF for P120,000. The book value of the equipment on that was P144,000. The loss of P24,000 is reflected in the net income of ABC indicated above. The equipment is expected to have a useful life of five years from the date of the sale. In December 31,2021 consolidated statement of financial position, the non-controlling interest in net assets of Subsidiary should be presented at?

Q2. ABC Corp. purchased 95% of the stock of DEF Company on January 2021. On that date, the book value of DEF's net assets approximated fair value. As a result of the purchase, ABC recognized P75,000 worth of goodwill. During 2021, DEF sold inventory to ABC. On December 31,2021, DEF had unrealized profits on its books od P12,500. By December 31,2022, the entire inventory left on ABC's books had been sold to outside parties. During 2022, ABC sold inventory to DEF and had P18,750 unrealized profits left on its books at the end of 2022. For 2022, ABC reported operating income of P590,000 and DEF reported net income of P450,000. What is the consolidated net income?