On January 2, 2012, Power Company acquired 90% of the outstanding shares of Solar Inc. at book value. During 2012 and 2013, intercompany sales amounted to P2,000,000 and P4,000,000, respectively. Power Company consistently recognized a 25% mark-up based on cost while Solar Inc. had a 25% gross profit on sales. The inventories of the buying affiliate, which all came from inter-company transactions show: Power Solar December 31, 2012 P240,000 100,000 December 31, 2013 P160,000 40,000 On October 1, 2012, Solar Inc. purchased a piece of land costing P1,000,000 from Power Company for P1,500,000. On December 1, 2013, Solar Inc. sold this land to unrelated party for P1,500,000. On the other hand, on July 1, 2013, Solar Inc. sold a used photo-copier with a carrying value of P60,000 and remaining life of 3 years to Power Company for P42,000. Separate Statement of Comprehensive income for the two companies for the year 2013 follow: Sales Cost of sales Gross Profit Operating expenses Operating Profit Loss on Sale of Office Equipment Dividend Revenue |Net Income Power Company P25,000,000 (15,000,000) P10,000,000 (6,000,000) P4,000,000 Solar Inc. P14,000,000 (8,400,000) P5,600,00 (3,800,000) P1,800,000 (18,000) P4,000,000 40,000 P1,822,000 Compute the following amount s for/as December 31, 2013 1. Consolidated Gross Profit

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.