On January 1, 2022, Pet Company purchased 80% of the shares of Sam Company for P1,000,000. The shareholders' equity of Sam Company on that date showed: Ordinary Shares - P570,000 and Retained Earnings - P490,000. Non-controlling interest is initially measured at proportionate share of subsidiary's net assets. On April 30, 2022, Pet acquired used machinery for P84,000 from Sam that was being carried in the latter's books at P105,000. The asset still has a remaining useful life of 5 years. On the other hand, on August 31, 2022, Sam purchased an equipment that was already 20% depreciated from Pet for P345,000. The original cost of this equipment was P375,000 and had a remaining life of 8 years. Net income of Pet Company and Sam Company for 2022 amounted to P360,000 and P155,000. Dividends paid totaled to P115,000 and P52,500 for Pet and Sam, respectively. Required: On the consolidated financial statements in 2022, how much would be the carrying value of Property and Equipment?
On January 1, 2022, Pet Company purchased 80% of the shares of Sam Company for P1,000,000. The shareholders' equity of Sam Company on that date showed: Ordinary Shares - P570,000 and
On April 30, 2022, Pet acquired used machinery for P84,000 from Sam that was being carried in the latter's books at P105,000. The asset still has a remaining useful life of 5 years. On the other hand, on August 31, 2022, Sam purchased an equipment that was already 20%
remaining life of 8 years.
Net income of Pet Company and Sam Company for 2022 amounted to P360,000 and P155,000. Dividends paid totaled to P115,000 and P52,500 for Pet and Sam, respectively.
Required:
On the consolidated financial statements in 2022, how much would be the carrying value of Property and Equipment?
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