CASE PROBLEM - Formal Assessment 3 Instructions: Submit your solutions in Excel file. Respond to the...

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CASE PROBLEM - Formal Assessment 3 Instructions: Submit your solutions in Excel file. Respond to the questions in the Forms. Avoid using the peso sign in your answers. Deadline for submission: December 5, 2023, at 11:59 PM. On January 1, 2023, Parent Co. acquired 75% interest in Sub Co. On acquisition date, Sub's capital is at P596,000. Sub's identifiable assets approximated their fair values except for inventory with carrying amount of P130,000 and fair value of P124,000 and equipment with carrying amount of P280,000 and fair value of P330,000. The remaining useful life of the equipment is 5 years. No dividends were declared by either entity during 2023. There were also no inter-company transactions and impairment in goodwill. Non-controlling interest was measured using the proportionate share method. The Statements of Financial Position of the entities on December 31, 2023 are as follows: ASSETS Cash Sub Parent 882,000 P 711,000 Inventory 945,000 135,000 Investment in subsidiary 675,000 Property, Plant and equipment.net 1,260,000 270,000 TOTAL ASSETS P 3,762,000 P 1,116,000 LIABILITIES AND EQUITY Trade and other payables Notes Payable Share capital Retained earnings 657,000 270,000 215,000 100,000 1,900,000 450,000 990,000 296,000 P 3,762,000 P 1,116,000 TOTAL LIABILITIES AND EQUITY At the end of the year, Parent Co. and Sub Co. reported profits: Statements of Profit or Loss For the year ended December 31, 2023 Revenues Operating Expense Profit for the year Parent Subs 2,400,000 (1,152,000) 1,248,000 960,000 (480,000) 480,000 Requirement: 1. Compute the Depreciation of Fair value adjustments. 2. Compute the Goodwill end of the year. 3. Compute the Non-controlling interest at the end of the year. 4. Compute the Consolidated Retained Earnings. 5. Compute the Consolidated Profit. 6. Compute the profit attributable to parent. 7. Compute the profit attributable to subsidiary. 8. Compute the Total Consolidated Assets. 9. Compute the Total Consolidated Liabilities. 10. Compute the Total Consolidated Equity. CASE PROBLEM - Formal Assessment 3 Instructions: Submit your solutions in Excel file. Respond to the questions in the Forms. Avoid using the peso sign in your answers. Deadline for submission: December 5, 2023, at 11:59 PM. On January 1, 2023, Parent Co. acquired 75% interest in Sub Co. On acquisition date, Sub's capital is at P596,000. Sub's identifiable assets approximated their fair values except for inventory with carrying amount of P130,000 and fair value of P124,000 and equipment with carrying amount of P280,000 and fair value of P330,000. The remaining useful life of the equipment is 5 years. No dividends were declared by either entity during 2023. There were also no inter-company transactions and impairment in goodwill. Non-controlling interest was measured using the proportionate share method. The Statements of Financial Position of the entities on December 31, 2023 are as follows: ASSETS Cash Sub Parent 882,000 P 711,000 Inventory 945,000 135,000 Investment in subsidiary 675,000 Property, Plant and equipment.net 1,260,000 270,000 TOTAL ASSETS P 3,762,000 P 1,116,000 LIABILITIES AND EQUITY Trade and other payables Notes Payable Share capital Retained earnings 657,000 270,000 215,000 100,000 1,900,000 450,000 990,000 296,000 P 3,762,000 P 1,116,000 TOTAL LIABILITIES AND EQUITY At the end of the year, Parent Co. and Sub Co. reported profits: Statements of Profit or Loss For the year ended December 31, 2023 Revenues Operating Expense Profit for the year Parent Subs 2,400,000 (1,152,000) 1,248,000 960,000 (480,000) 480,000 Requirement: 1. Compute the Depreciation of Fair value adjustments. 2. Compute the Goodwill end of the year. 3. Compute the Non-controlling interest at the end of the year. 4. Compute the Consolidated Retained Earnings. 5. Compute the Consolidated Profit. 6. Compute the profit attributable to parent. 7. Compute the profit attributable to subsidiary. 8. Compute the Total Consolidated Assets. 9. Compute the Total Consolidated Liabilities. 10. Compute the Total Consolidated Equity.