On January 1, 2019, Put-3-ska Company purchased 80% of the stock of Sheet Company for P316,000. On this date, Sheet Company had ordinary share, share premium, and accumulated profits of P40,000, P120,000, and P190,000, respectively. Put-3-ska Company’s ordinary share amounted to P500,000 and accumulated profits of P200,000.On January 1, 2019, the only tangible assets of Sheet Company that were undervalued were inventory and building. Inventory, for which FIFO is used was worth P5,000 more than its cost. The inventory was sold in 2019. Building, which was worth P15,000 more than book value, has a remaining life of 8 years, and straight-line depreciation is used. Any remaining excess is full goodwill with an impairment for 2019 amounting to P3,000. Sheet Company reported net income of P50,000 and paid dividends of P10,000 in 2019, while the parent’s reported net income amounted to P100,000 and paid dividends of P20,000.Determine the Consolidated net income for 2019.
On January 1, 2019, Put-3-ska Company purchased 80% of the stock of Sheet Company for P316,000. On this date, Sheet Company had ordinary share, share premium, and
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