On January 2, 2020, P Corporation purchased 80% of the outstanding shares of S Company for P4,750,000. At that date, S had P4,000,000 of ordinary shares outstanding and retained earnings of P1,600,000. · S’s equipment with a remaining life of 5 years had a book value of P2,250,000 and a fair value of P2,630,000. S’s remaining assets had book values equal to their fair values. · All intangibles except goodwill are expected to have remaining lives of 8 years. · The income and dividend figures for both P and S are as follows: Net income of P in 2019 is P900,000; 2020 is P1,100,000. Net income of S in 2019 is P340,000; 2020 is P510,000. · Dividends of P in 2019 is P220,000; 2020 is P390,000. Dividends of S in 2019 is P70,000; 2020 is P130,000. · P’s retained earnings balance at the date of acquisition was P3,450,000. How much is the consolidated retained earnings attributable to controlling interest in 2020?
On January 2, 2020, P Corporation purchased 80% of the outstanding shares of S Company for P4,750,000. At that date, S had P4,000,000 of ordinary shares outstanding and
· S’s equipment with a remaining life of 5 years had a book value of P2,250,000 and a fair value of P2,630,000. S’s remaining assets had book values equal to their fair values.
· All intangibles except
· The income and dividend figures for both P and S are as follows: Net income of P in 2019 is P900,000; 2020 is P1,100,000. Net income of S in 2019 is P340,000; 2020 is P510,000.
· Dividends of P in 2019 is P220,000; 2020 is P390,000. Dividends of S in 2019 is P70,000; 2020 is P130,000.
· P’s retained earnings balance at the date of acquisition was P3,450,000.
How much is the consolidated retained earnings attributable to controlling interest in 2020?
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