Problem 4: On July 1, 2020, Density company purchased 80% of the outstanding shares of Evolve company at a cost of P4,000,000. On the date, Evolve had P2,500,000 of ordinary shares and P3,500,000 of retained earnings. For 2020, Density had income of P1,400,000 from its separate operations and paid dividends of P750,000. For 2020, Evolve reported income of P325,000 and paid dividends of P150,000. All the assets and liabilities of Evolve have book values equal to their respective fair market values. On October 1, 2020, there was an upstream sale of machinery for P500,000. The book value of the machinery on the date was P600,000. The machinery is expected to have a useful life of 5 years from the date of sale.

In December 31,2020 consolidated income statement, how much is the consolidated net income attributable to the controlling interest?

 

Answer rating: 100% (QA)

To calculate the consolidated net income attributable to the controlling interest we need to follow ... View the full answer