ABC Parent acquired 85% of the outstanding common stock of XYZ Subsidiary on January 1, 2015 for P1,357,150. On this date, Subsidiarys common stock and retained earnings balances were P1,000,000 and P300,000, respectively. The fair values of Subsidiarys net assets were equal to their values except for a patent, which had a book value of P63,000, a fair value of P42,000, and a remaining life of 7 years and goodwill uniformly impaired for 12 years.

Financial statements for both companies as of December 31, 2018, are presented below: (non-controlling interest is measured as a direct percentage of the fair value of Subsidiarys net assets)

COMPUTE FOR THE FOLLOWING:

1. FAIR VALUE OF NET ASSETS OF SUBSIDIARY

2. NON-CONTROLLING INTEREST

3. GOODWILL

NEED ASAP. THANK YOU!

SUBSIDIARY 1 600 000 PARENT 2 184 700 182 200 7 000 INCOME STATEMENT SALES INCOME FROM SUBSIDIARY GAIN ON SALE OF LAND LOSS ON SALE OF EQUIPMENT COST OF GOODS SOLD DEPRECIATION AND OTHER EXPENSES NET INCOME (1 050 000) (650 000) (25 000) (920 000) (445 000) 673 900 210 000 PARENT SUBSIDIARY STATEMENT OF RETAINED EARNINGS RETAINED EARNINGS, 1/1/2018 NET INCOME DIVIDENDS RETAINED EARNINGS, 12/31/2018 1 406 100 673 900 (150 000) 1930 000 700 000 210 000 (90 000) 820 000 .. SUBSIDIARY 224 000 250 000 800 000 BALANCE SHEET CASH ACCOUNTS RECEIVABLE INVENTORY INVESTMENT IN SUBSIDIARY EQUIPMENT ACCUMULATED DEPRECIATION LAND PATENT TOTAL PARENT 255 750 718 000 1 040 000 1596 250 1 900 000 (500 000) 490 000 1 150 000 (300 000) 340 000 36 000 2 500 000 5 500 000 ACCOUNTS PAYABLE COMMON STOCK RETAINED EARNINGS TOTAL 350 000 3 220 000 1 930 000 5 500 000 680 000 1 000 000 820 000 2 500 000