4. COMPLEX HOLDING STRUCTURE

Since January 1, 2017, P owns 80 percent of SEJ shares and 75 percent of SEM shares. Meanwhile, SEJ owns 12.50 percent of P's shares and SEM owns 10 percent of P's shares. Thus, between P and the subsidiaries formed two Mutual Holding affliation relationships: P-SEJ and P-SEM. In the fiscal year 2020, it is known that the separate net income and dividend distribution of the three companies above are as follows:

	Separate Net Income	Dividend
P	70.000.000	40.000.000
SEJ	25.000.000	15.000.000
SEM	30.000.000	20.000.000

Note: Support your answers with adequate calculations and explanations.

Question:

1. Calculate:

(a) Income from SEJ to be recognized by P,

(b) Controlling Interest Share, and

(c) Non Controlling Interest Share, when the mutual holding structure of P and SEJ is recorded with conventional approach. Ignore the affiliation between P and SEM. (15 points)

2. Based on the results in point 1, make a journal by P in 2020 in the application of a special equity method related to his investment transactions in SEJ. Also, make a journal by SEJ in 2020 for its stock investment in P. Ignore the affiliate relationship between P and SEM (10 points)