21

On June 1, 2021, P Co. acquired 80% of the outstanding shares of s Co. at an amount which is P200,000 less than the fair value of the net assets. On this date, the carrying value of the net assets of S Co. was P1,800,000 and its fair value was P2,000,000. The difference is attributable to inventories. P Co. opted to measure NCI at fair value. Selected financial data are available:

		P Co.	S Co.
Sales, including intra-group sales		P7,540,000	P4,760,000
Dividends received		35,000
Expenses		20% of sales (both company)

During the year, an upstream sale was made amounting to P602,000 of which 20% remains unsold at the end of the year. Another downstream sale was made for P1,190,000 of which 30% remains unsold at the end of the year. P Co. and S Co. used the same rate of markup on cost: 40% for all types of sales.

The Non-Controlling Interest to be presented in 2021 Consolidated Statements is: