Pauline Company acquired 4,000 shares of the outstanding stock of Sophia Company for P1,200,000 on January 1, 2020. Pauline Company also paid P100,000 direct costs related to the combination. On this date, the stockholders equity of Sophia Company consisted of Capital Stock of P500,000, P100 par and Retained Earnings of P600,000. The carrying values of Sophia Company identifiable assets and liabilities are equal to their fair market values. NCI is measured at its proportionate share.

Pauline Company acquired 4,000 shares of the outstanding stock of Sophia Company for P1,200,000 on January 1, 2020. Pauline Company also paid P100,000 direct costs related to the combination. On this date, the stockholders equity of Sophia Company consisted of Capital Stock of P500,000, P100 par and Retained Earnings of P600,000. The carrying values of Sophia Company identifiable assets and liabilities are equal to their fair market values. NCI is measured at its proportionate share.

On the same date, Pauline Company sold equipment costing P100,000 with accumulated depreciation of P60,000 to Sophia Company for P120,000. Pauline Company was depreciating the equipment for 10 years with no salvage value using the straight-line method and Sophia Company continued the same method. At the end of the year, Pauline Company reported net income of P300,000 and paid dividends of P250,000 while Sophia Company reported net income of P200,000 and paid dividends of P10 per share.

The consolidated net income in 2020 is _________