Reference no: EM132898111

Question - On January 1, 2020, Parent Corp. purchased 80% of the outstanding shares of Subsidiary Co. at a cost of P1,620,000.  On that date, Subsidiary had P600,000 of ordinary shares and P1,000,000 of retained earnings. All the assets and liabilities of Subsidiary Co. have book values approximately equal to their respective market values, except for equipment with fair market value increase of 50,000 (remaining life of 4 years).  For 2021, the operating results of Parent and Subsidiary are: Net income P1,000,000 and P500,000, respectively; Dividends paid, P200,000 and P80,000, respectively. During 2021, Parent Corp. sold merchandise to Subsidiary at 120% of its cost, the same as that used in 2020 sales.  The inventory of Subsidiary on January 1, 2021 included P19,200 of merchandise purchased from Parent Corp. in 2020, while its December 31, 2021 inventory included P36,000 of merchandise purchased from Parent Corp. in 2021. The Retained Earnings, beg of Subsidiary in 2021 was P1,200,000. Parent uses the proportionate method in measuring NCI. Impairment loss was estimated at P20,000 and 30,000 in 2020 and 2021, respectively, based on partial goodwill recognized.

Required - What is the consolidated net income attributable to parent in 2021?