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PROBLEM 2. On January 2, 2012, D Corporation purchased 80% of the outstanding shares of C Company for P4,750,000. At that date, C had P4,000,000 of ordinary shares outstanding and retained earnings of P1,600,000. ED E"BB BE C'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. C'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 D and C are as follows: Net income of D in 2012 is P900,000; 2013 is P1,100,000. Net income of C in 2012 is P340,000; 2013 is P510,000. Dividends of D in 2012 is P220,000; 2013 is P390,000. Dividends of C in 2012 is P70,000; 2013 is P130,000. D'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 2013? P5,272,400 P5,333,200 P5,233,400 P5,232,400 .009\"? Share of D Corporation in the adjusted and undistributed earnings of C Company in 2012 A. P211,200 B. P155,200 c. P216,000 D. P182,400 How much is the consolidated profit in 2013? A. P1,343,200 a. P1,438,000 c. P1,430,000 o. P1,464,000 4. How much is the non-controlling interest in net assets in 2013? A. P1,295,600 B. P1,250,000 C. P1,302,400 D. P1,289,500 PROBLEM 3. Positive Corporation acquired 80% of the outstanding common stock of Synergy Company on June 1, 2013 for P586,250. Eu Synergy Company's stockholder's equity components at the end of this year are as follows: Ordinary shares. EBB E EBB P100 par, P250,000, APIC P112,500, Retained Earnings P222,500. Noncontrolling interest is measured at fair value. All the assets of Synergy were fairly valued, except for inventories, which are overstated by P11,000, and equipment, which was understated by P15,000. Remaining useful life of equipment is 4 years. Both companies use the straight-line method for depreciation and amortization. Stockholder's equity of Positive on January 1, 2013 is composed of Ordinary shares P750,000, Share premium P175,000, Retained Earnings P525,000. Fair value of non-controlling interest on the date of acquisition is P117,500. Goodwill, if any, should be written down by P14,225 at year-end. Net income for the rst year of parent and subsidiary are P75,000 and P42,500 (from date of acquisition) respectively. Dividends declared at the end of the year amounted to P20,000 and P15,000. During the year, there was no issuance of new ordinary shares. What is the balance of the non-controlling interest in net assets of subsidiary on December 31, 2013? A. P145,167.50 B. P127,242.50 C. P124,242.50 D. P12131750 What is the amount of consolidated shareholder's equity? P1,520,345 P1,642,262.50 P1,462,262.50 P1,644,587.50 .005\