AA2 - CHAPTER 3
SUGGESTED ANSWERS
EXERCISES Exercise 3 -1
1. Investment in Stun Corp.
Consideration transferred (800 shares @ P200) P160,000
Book value of interest acquired as of July 1, 2014
Ordinary Share Capital (1,000 shares x P100 x 80%) P80,000
Retained Earnings [(P50,000 + 1/2 of P30,000) 80%] 52,000 132,000
Goodwill P 28,000
2. Investment in Star Corp.
Consideration transferred (900 shares @ P100) P 90,000
Book value of interest acquired as of July 1, 2014
Ordinary Share Capital (1,000 shares x P100 x 90%) P90,000
Retained Earnings [(P15,000 + 1/2 of P5,000) 90%] ( 15,750) 74,250
Goodwill P 15,750
Exercise 3 - 2 Cost Method
a. Investment in Stark Co. 1,500/2,000 = 75% 240,000
Cash 240,000
b. no entry
c. Cash P30,000 x 75% 22,500
Dividend Revenue P30,000 x 6/12 = P15,000 x 75% 11,250
Investment in Stark Co. 11,250
d. no entry
2. Ordinary Share Capital P200,000
APIC 50,000
RE [P20,000 + (P30,000 x 1/2)] 35,000
Total shareholders’ equity on date of acquisition P285,000
x 75%
Book value of interest acquired P213,750
Exercise 3 –3
1. Investment in Saturn Co. 800,000
Cash 800,000
Cash P80,000 x 80% 64,000
Dividend Revenue 64,000
2. Original cost of investment – P800,000
Chapter 3 – AA2 (2014 edition) page 2
4. Non-controlling interest, December 31, 2014:
Ordinary Share Capital P 500,000
Retained Earnings = P500,000 + P200,000 – P80,000 620,000
Total P1,120,000
Non-controlling interest percentage x 20%
Non-controlling interest P 224,000
Exercise 3 – 4
a. Investment in Saloon Corp. 67,500
Cash 67,500
750 shares @ P90 = P67,500 b. No entry
c. Received 75 shares from Saloon Corp. as share capital dividend. Shares now owned and held are 825 shares. d. Cash 4,125 Dividend Revenue 4,125 825 shares @ P5 = P4,125 e. No entry Exercise 3 – 5 2013 P90,000 x 60% P 54,000 2014 P180,000 x 60% P108,000 2015 P135,000 x 60% P 81,000 Exercise 3 - 6
Case A Case B Case C
Net income (loss) from own operations:
Pastel Corp. P 80,000 P(20,000) P40,000
Sly Corp. (90%-owned) (13,500) 45,000 27,000
Sty Corp. (70%-owned) 31,500 49,000 24,500
Depreciation:
Excess of cost over book value of
investment in Sly (P9,000/90%/5 yrs.) ( 2,000)
Excess of book value over cost of
investment in Sty (P3,500/70%/5 yrs.) ________ ________ 1,000
Consolidated net income P 98,000 P 74,000 P90,500
Exercise 3 – 7
1. a. Investment in Sat Co. 16,000
Retained Earnings, Pat Co. 16,000
To record the share of Pat in the net increase in the retained earnings of Sat.
Chapter 3 – AA2 (2014 edition) page 3
(P70,000 - P50,000) 80% = P16,000
b. Ordinary Share Capital, Sat Co. 200,000
Retained Earnings , Sat Co. 70,000
Assets 10,000
Investment in Sat Co. P208,000 + P16,000 224,000
Non-controlling Interest P280,000 x 20% 56,000
To eliminate shareholders’ equity balances and establishing non-controlling interest.
208,000 – (250,000 x 80%) = 8,000/80% = 10,000
c. Operating Expenses 1,000
Retained Earnings, Pat Co. 2,000
Assets 3,000
To record depreciation of adjustment for prior years and current year at P1,000 per year.
2. Pat and Subsidiary Sat Co.
Consolidated Working Paper For the Year Ended December 31, 2014
Adj. & Eliminations Cons. Non-cont Cons.
Debits Pat Co. Sat Co. Debit Credit IS Interest SFP
Cash & Other Assets 452,000 440,000 b. 10,000 c. 3,000 899,000
Investment in Sat 208,000 a. 16,000 b. 224,000 Cost of Sales 300,000 200,000 500,000 Operating Exp. 90,000 50,000 c. 1,000 141,000 Total 1,050,000 690,000 899,000 Credits Liabilities 150,000 120,000 270,000 OSC, P100par 300,000 200,000 b. 200,000 300,000 Ret. Earnings 100,000 70,000 b. 70,000 a. 16,000 114,000 c. 2,000 Sales 500,000 300,000 (800,000) 1,050,000 690,000 Consolidated NI 159,000 Non-cont. int. NI 9,800 9,800 NI attrib. to parent 149,200 149,200 Non-cont. int. b. 56,000 56,000 65,800 Total 245,000 245,000 899,000
NCI net income (300,000 -200,000-50,000-1,000) x 20% = 9,800
3.
Pat Co. and Subsidiary Sat Co. Consolidated Income Statement For the Year Ended December 31, 2014
Sales (P500,000 + P300,000) P800,000
Cost of Sales (P300,000 + P200,000) 500,000
Gross Profit P300,000
Chapter 3 – AA2 (2014 edition) page 4
Consolidated Net Income P159,000
Less Non-controlling Interest net income 9,800
Net Income Attributable to Pat Co. P149,200
4.
Pat Co. and Subsidiary Sat Co. Consolidated Statement of Financial Position
December 31, 2014
Assets Liabilities and Shareholders’ Equity
Cash and Other Assets P899,000 Liabilities P270,000
Ordinary Share Capital, P100 par 300,000
Retained Earnings 263,200
Non-controlling Interest 65,800
Total Assets P899,000 Total liabilities and shareholders’ Equity P899,000
Exercise 3 - 8
a. Advances from Pallet Co. 15,000
Advances to Stall Co. 15,000
b. Notes Receivable Discounted 10,000
Notes Receivable from Pallet Co. 10,000
c. Note Payable to Stall Co. 5,000
Note Receivable from Pallet Co. 5,000
d. Dividends Payable 1,600
Dividends Receivable 1,600
PROBLEMS
Problem 3 – 1
1. Investment in Stow Co. 280,000
Cash 280,000
Consideration transferred P280,000
Book value of interest acquired :
Ordinary Share Capital (P100,000 x 80%) P 80,000
Retained Earnings (P50,000 x 80%) 40,000 120,000
Excess of cost over book value P160,000
Allocation of excess:
Plant and equipment P 50,000
Inventory 20,000 70,000x 80% 56,000
Goodwill P104,000
Expenses on the adjustment
2014 2015
Plant and equipment (P50,000/5 yrs.) P10,000 P10,000
Goodwill impairment 5,000 4,000
Inventories 20,000 ---__
Total P35,000 P14,000
2. Working paper elimination entries:
2014 a. Ordinary Share Capital, Slow Co. 100,000
Chapter 3 – AA2 (2014 edition) page 5
Inventories 20,000
Plant and Equipment 50,000
Goodwill 104,000
Investment in Slow Co. 280,000
Non-controlling Interest 44,000
100,000 +50,000+50,000+20,000 x 20% = 44,000
c. Cost of Sales 20,000
Operating Expenses 15,000
Plant and Equipment 10,000
Goodwill 5,000
Inventory 20,000
2015 a. Ordinary Share Capital, Slow Co. 100,000
Retained Earnings, Slow Co. 50,000
Inventory 20,000
Plant and Equipment 50,000
Goodwill 104,000
Investment in Slow Co. 280,000
Non-controlling Interest 44,000
b. Retained Earnings, Plow Co. 35,000
Operating Expenses 14,000
Plant and Equipment 20,000
Inventory 20,000
Goodwill 9,000
3. Computation of consolidated net income
2014 2015 Net income from own operations:
Plow Co. P70,000 P 80,000
Slow Co. 60,000 50,000
Impairment / depreciation / amortization ( 35,000) ( 14,000)
Consolidated net income P95,000 P 116,000
Problem 3 - 2
Consideration transferred P2,280,000
Book value of interest acquired:
Ordinary Share Capital (P1,000,000 x 80%) P 800,000
Retained Earnings (P1,600,000 x 80%) 1,280,000 2,080,000
Goodwill P 200,000
Peach Co. and Subsidiary Silver Co. Consolidated Working Paper For the Year Ended December 31, 2014
Adj. and Eliminations Non-cont Consolidated
Peach Co. Silver Co. Debit Credit Interest St. of FP
Chapter 3 – AA2 (2014 edition) page 6
Sales 4,000,000 2,000,000 6,000,000 Cost of sales 1,600,000 1,200,000 2,800,000 Gross profit 2,400,000 800,000 3,200,000 Operating expenses 1,560,000 440,000 c. 10,000 2,010,000 Operating income 840,000 360,000 1,190,000 Non-cont. interest NI 72,000 72,000 NI-carried forward 840,000 360,000 72,000 1,118,000 Retained Earnings St. Bal. January 1 6,000,000 1,600,000 b. 1,600,000 6,000,000 NI brought forward 840,000 360,000 72,000 1,118,000 Dividend fr. Subsidiary 96,000 a. 96,000 Total 6,936,000 1,960,000 72,000 7,118,000
Less Div. declared 800,000 120,000 a. 96,000 24,000 800,000
Balance, Dec. 31 6,136,000 1,840,000 48,000 6,318,000 St. of Financial Position Cash 600,000 200,000 800,000 Accounts Receivable 400,000 400,000 d. 10,000 790,000 Inventories 800,000 600,000 1,400,000 Land 1,200,000 1,200,000
Building (net of AD) 800,000 800,000
Equipment (net of AD) 2,456,000 2,000,000 4,456,000
Inv. in Silver Co. 2,280,000 b. 2,280,000
Goodwill b. 200,000 c. 10,000 190,000
Total 8,536,000 3,200,000 9,636,000
AP and accrued exp. 604,000 360,000 d. 10,000 954,000
Bonds payable 196,000 196,000
OS - Peach Co. P100 par 1,000,000 1,000,000
OS - Silver Co. P20 par 1,000,000 b. 1,000,000
APIC 600,000 600,000
RE-brought forward 6,136,000 1,840,000 48,000 6,318,000
Non-cont. Interest b. 520,000 520,000 568,000
Total 8,536,000 3,200,000 2,916,000 2,916,000 568,000 9,636,000
Peach Co. and Subsidiary Silver Co. Consolidated Income Statement For the Year Ended December 31, 2014
Sales P6,000,000
Cost of Sales 2,800,000
Gross Profit P3,200,000
Operating Expenses 2,010,000
Consolidated Net Income P1,190,000
Non-controlling Interest net income P 72,000
Net Income Attributable to Peach Co. P1,118,000
Peach Co. and Subsidiary Silver Co. Consolidated Statement of Financial Position
Chapter 3 – AA2 (2014 edition) page 7
Assets
Cash P 800,000
Accounts Receivable 790,000
Inventories 1,400,000
Land 1,200,000
Building (net of accumulated depreciation) 800,000
Equipment (net of accumulated depreciation) 4,456,000
Goodwill 190,000
Total Assets P9,636,000
Liabilities and Shareholders’ Equity
Accounts Payable and Accrued Expenses P 954,000
Bonds Payable (face amount - P200,000) 196,000
Ordinary Share Capital, P100 par 1,000,000
Additional Paid-in Capital 600,000
Retained Earnings 6,318,000
Non-controlling Interest 568,000
Total Liabilities and Shareholders’ Equity P9,636,000
Problem 3 – 3 Requirement No. 1
Consideration transferred P1,512,000
Book value of interest acquired:
1,400,000 x 80% 1,120,000
Excess of cost over book value of acquired investment P 392,000
Allocation of excess: Inventories P 60,000 Land 100,000 Building 200,000 Equipment (150,000) Patent 80,000 290,000 x 80% 232,000 Goodwill P 160,000 Requirement No. 2
Prose Co. and Subsidiary Slope Co. Consolidated Working Paper For the Year Ended December 31, 2014
Prose Slope Adj. & Eliminations IS Non-cont Consolidated
Debits Co. Co. Debit Credit Dr. (Cr.) Interest St. of FP
Cash 400,000 200,000 600,000 Accounts Receivable 300,000 100,000 400,000 Inventories 200,000 80,000 b. 60,000 c. 60,000 280,000 Land 300,000 b. 100,000 400,000 Buildings 520,000 b. 260,000 780,000 Equipment 1,400,000 940,000 b. 156,670 2,183,330
Inv. in Slope Co. 1,512,000 b. 1,512,000
Cost of sales 800,000 300,000 c. 60,000 1,160,000
Expenses 720,000 400,000 c. 8,000 1,238,000
Chapter 3 – AA2 (2014 edition) page 8
Dividends paid 200,000 100,000 a. 80,000 (20,000) 200,000
Patents b. 80,000 c. 8,000 72,000
Goodwill b. 160,000 c. 5,000 155,000
5,532,000 2,940,000 5,070,330
Credits
AP & accrued exp. 248,000 380,000 628,000
AD - Bldg. 120,000 b. 60,000 210,000 c. 10,000 d. 20,000 AD - Equipt. 804,000 40,000 b. 6,670 d. 90,000 912,330 c. 15,000 OS - P100 par 400,000 400,000 OS - P20 par 600,000 b. 600,000 APIC 800,000 800,000 RE - Prose Co. 1,200,000 1,200,000 RE - Slope Co. 800,000 b. 800,000 Sales 2,000,000 1,000,000 (3,000,000) Dividend fr. Sub 80,000 a. 80,000
NCI Net Income 47,400 47,400
NI attr. to Prose 554,600 554,600
Non-cont. Int. b. 338,000 338,000 365,400
Totals 5,637,600 2,940,000 2,339,670 2,339,670 5,070,000
NCI 600,000 + 800,000+290,000 x 20% = 338,000 Charges to expense for asset adjustments:
Inventories P60,000 Building 10,000 Equipment ( 15,000) Patent 8,000 Goodwill 5,000 Total P68,000
Adjustments to Building and equipment: Building (increase is 50%) Cost (P520,000 x 50% ) P260,000 AD (P120,000 x 50% ) 60,000 Net amount P200,000 Equipment (decrease is 16.67%) Cost (P940,000 x 16.67% ) P156,670 AD (P 40,000 x 16.67%) 6,670 Net amount P150,000
Current year depreciation based on book value:
Building = (P520,000 – P120,000) / 20 yrs. = P20,000
Equipment = (P940,000 – P40,000) / 10 yrs. = P90,000
Requirement No. 3
Prose Co. and Subsidiary Slope Co. Consolidated Income Statement For the Year Ended December 31, 2014
Chapter 3 – AA2 (2014 edition) page 9
Sales P3,000,000
Cost of sales 1,160,000
Gross Profit P1,840,000
Expenses 1,238,000
Consolidated Net Income P 602,000
Non-controlling Interest net income P 47,400
Net Income Attributable to Prose P 554,600
Prose Co. and Subsidiary Slope Co. Consolidated Statement of Financial Position
December 31, 2014 Assets Cash P 600,000 Accounts Receivable 400,000 Inventories 280,000 Land 400,000 Buildings P 780,000
Less Accumulated Depreciation 210,000 570,000
Equipment P2,183,330
Less Accumulated Depreciation 912,330 1,271,000
Patents 72,000
Goodwill 155,000
Total Assets P3,748,000
Liabilities and Shareholders’ Equity
Accounts Payable and Accrued Expenses P628,000
Ordinary Share Capital, P100 par 400,000
Additional Paid-in Capital 800,000
Retained Earnings (P1,200,000 + P554,600 - P200,000) 1,554,600
Non-controlling Interest 365,400
Total Liabilities and Shareholders’ Equity P3,748,000
Problem 3 - 4
1. a. Notes Payable - Palma Corp. 10,000
Notes Receivable - Salman Co. 10,000
b. Accrued Interest on Notes Payable 600
Accrued Interest on Notes Receivable 600
2. Sales P 70,000
Interest revenue 600
Expenses ( 53,000)
Interest expense ( 600)
Consolidated Net income P 17,000
Non-controlling Interest net income [(P20,000 - P17,000 - P600) x 10%] ( 240)
Net income attributable to Palma Corp. P 16,760
Problem 3 – 5
1. Non-controlling interest net income (400,000-240,000-60,000 x 20%) P 20,000 2. Consolidated net income 800,000+400,000-500,000-240,000-100,000-60,000-6,000 P294,000
Chapter 3 – AA2 (2014 edition) page 10
Less Dividends receivable (P20,000 x 80%) 16,000
Current assets P454,000
4. Consideration transferred P560,000
Book value of interest acquired 500,000 x 80% 400,000
Goodwill P160,000
5. None, since the dividend revenue received from Stadium is closed to RE.
6. Beginning retained earnings of Pentium P260,000
Net income attributable to parent 294,000 -20,000 274,000
Pentium dividends for 2015 (120,000)
Consolidated retained earnings at December 31, 2015 P414,000
7. P1,000,000 – the share capital of Pentium.
8. 600,000+100,000-50,000 x 20% P130,000
9. None, since the investment account is eliminated.
10. Goodwill P160,000
Less impairment loss for 2014 and 2015 16,000
Goodwill as of December 31, 2015 P144,000
MULTIPLE CHOICE
Change 3-A No. 20 from 30% to 70%
3 - A 1. C 5. C 9. A 13. B 17. B 2. B 6. A 10. C 14. D 18. C 3. B 7. C 11. D 15. B 19. B 4. A 8. A 12. C 16. C 20. A
3 - B 1. B Consideration transferred P290,000
Excess of BV over cost 14,000
BV of interest acquired P304,000
2. A P58,400 ÷ 20% P292,000
3. B Consolidated working capital (P726,000 – P300,000) P426,000 Pole’s working capital (P436,000 – P166,000) 270,000
Sole’s working capital P156,000
3 - C A Net income from own operations of Parker Co.100,000 - 8,500 P 91,500
Starter Co. net income 40,000
Consolidated net income P131,500
3 - D 1. D Net income from own operations of Pentium
(P1,000,000 - P600,000 - P180,000) P220,000
Systems NI [P600,000 - P400,000 - P100,000] 100,000 Depreciation of excess of cost over BV of investment
Chapter 3 – AA2 (2014 edition) page 11
(P416,000 - P400,000) / 80%/10 years ( 2,000)
Consolidated net income P 318,000
3 - E 1. C 60,000-50,000+36,000 x 80% P 36,800
2. B Consideration transferred P756,000
Liquidating Dividends
(P60,000 + P36,000 – P50,000 – P50,000) x 80% 3,200
Investment balance, December 31, 2015 P752,800
3 - F B 60,000 x 10% P 6,000
3 - G Consideration transferred, Jan. 1, 2011 P820,000
Book value of interest acquired (P800,000 x 80%) 640,000
Excess of cost over BV P180,000
Equipment with 10-year life (P180,000 / 80% = 225,000/10 = 22,500
1. D RE – Singson, Dec. 31, 2013 P400,000
RE – Singson, Jan. 1, 2011 ( 200,000)
Depreciation on the excess allocated to equipment
P225,000 / 10 years x 3 years (67,500)
Net increase in Retained Earnings of Singson
Pingson’s share on the increase P132,500X 80% Amount needed to convert the investment to equity basis P106,000
2. B Pingson’s separate net income P500,000
Singson’s net income 160,000 – 22,500 137,500
Consolidated net income P637,500
3. B Shareholders’ equity of Singson, January 1, 2014 P1,000,000
Net income for 2014 160,000
Dividends for 2014 ( 100,000)
Adjustment in assets 225,000
Depreciation 22,500 x 4 ( 90,000)
Shareholders’ equity of Singson, December 31, 2014 P1,195,000
Non-controlling interest percentage x 20%
Non-controlling interest, December 31, 2014 P 239,000
4. B P 100,000 x 20% P 20,000
3 - H C Total shareholders’ equity on acquisition P250,000
Net Income 60,000
Dividends P2,000 x 20 (40,000)
Adjustment in Plant assets P208,500 – P187,500 = P21,000/75% 28,000 Differential Adjustment for Depreciation P28,000/10 ( 2,800) Total shareholders’ equity December 31, 2014 P295,200
x 25%
Non-controlling interest P 73,800
3 - I A Zero, eliminated
3 - J 1. A TSE of Saddle Co., Jan. 1, 2014 (P70,000 / 20%) P350,000
Chapter 3 – AA2 (2014 edition) page 12
Dividends paid 50,000
TSE of Saddle Co., Jan. 1, 2009 P200,000
Percentage of interest of Paddle x 80%
Book value of acquired investment P160,000
Excess of cost over book value of net assets 50,000
Consideration transferred P210,000
2. A 50,000 – 12,500 P 37,500
3 - K 1. C Ordinary Share Capital (P75,000 x 90%) P 67,500
Retained earnings (P45,000 x 90%) 40,500
Book value of Slogan shares P108,000
2. C Consideration transferred P110,700
Book value of interest acquired 108,000
Excess of cost over book value P 2,700/
90%
P 3,000
3. C P4,500 x 90% P 4,050
Change 3-K No. 4 choice B to P199,200
4. B Retained earnings, January 1 P180,000
Net income from own operations 45,000
Share in subsidiary income (P 4,500 – 300) 4,200
Dividends declared and paid ( 30,000)
Consolidated RE (RE of parent), December 31, 2014 P199,200
3 - L B Consideration transferred P 800,000
Book value of interest acquired 900,000 x 80% 720,000
Goodwill P 80,000
300,000 + (100,000 x 80%) – 4,000 = P376,000
3 - M 1. B 80,000 -10,000 = 70,000 +35,000 – 5,000 P 100,000
2. C Total assets of Par P 1,110,000
Total assets of Sub 350,000
Total P 1,460,000
Adjustments and eliminations:
Investment in Sub ( 300,000)
Excess of cost over BV of investment:
Cost P300,000
Book value (OS – P30,000; APIC
P100,000; RE – P115,000) 245,000
Goodwill P 55,000
Less Impairment loss 5,000 50,000
Consolidated total assets P1,210,000
Chapter 3 – AA2 (2014 edition) page 13
4. C P55,000 – P5,000 P 50,000
5. A Total Stockholders’ equity of parent company P980,000
3 - N C TSE of Polo before the combination P 6,000,000
FMV of OS issued by Polo (200,000 x P20) 4,000,000
Net income of Polo and Solo 1,550,000
Impairment loss ( 100,000)
Dividends paid by Polo ( 450,000)
Consolidated shareholders’ equity, Dec. 31, 2014 P 11,000,000 3 - O B P3,000,000 X 7/10 = P2,100,000
3 - P D Preston Expenses P 1,242,000
Seldon Expenses P 1,428,000 Differential adjustment:
(P800,000 – P660,000)/10 14,000 1,442,000
Consolidated Total Expenses P 2,684,000
3 - Q 1. A P 6,500,000 + 630,000 @ 5 P 9,650,000
2. B P 4,400,000 + 630,000 @ 3 P 6,290,000
3. A Retained Earnings of Post
4. D Net income of Post (P 1,000,000 + P 1,100,000) P 2,100,000 Adjusted Net income of Shaw:
Net income P 500,000
Impairment loss on goodwill 5,100 494,900 P 2,594,900 5. B [(P9,000,000 + 300,000 + 500,000 – 350,000) P 9,450,000 X 40% P3,780,000 3 - R 1. A P1,000,000 2. A P1,000,000 3. A P120,000 x 80% = P96,000
4. C Subsidiary net income P240,000
Differential adjustment P60,000 + P80,000/10 14,000 P226,000 x 20% P 45,200
5. D Ordinary share capital P 600,000
Retained earnings Jan 1, 2013 P400,000 Net income P200,000 + P240,000 + P260,000 700,000
Dividends P80,000 + P100,000 + P120,000 (300,000) 800,000
Book value P1,400,000
Adjustment of Equipment and Building to fair value 140,000 Addl depreciation P140,000/10 = P14,000 x 3 (42,000)
Chapter 3 – AA2 (2014 edition) page 14
Goodwill P1,000,000/80% - P1,000,000 – P140,000 110,000 P1,608,000 x 20%
Non-controlling interest P 321,600
3 - S D Let x = Net income of Port
x = P84,080 + .70 of NI of Sort NI of Sort = (P12,000) + .20x x = P84,080 + .70 [(P12,000) + .20x] x = P84,080 - P8,400 + .14x x = P75,680 + .14x x = P75,680/.86 x = P88,000 3 - T B 2,000,000 – 800,000 x 80% P960,000 3 - U A 3,600,000 x 25% P900,000
3 - V 1. B Net income from own operation:
Peter Corp. P600,000
Seller Co. P1,000,000 – P800,000 200,000
Amortization (12,000)
Consolidated net income P788,000
Non-controlling interest net income:
200,000 x 3/12 x 30% P15,000 200,000 x 9/12 x 20% 30,000 Differential adjustment:
P12,000 x 3/12 x 30% (900)
P12,000 x 9/12 x 20% (1,800) 42,300 Consolidated net income attributable to controlling int. P745,700
