On January 1, 20x9, P Company purchased an 80% interest in S Company for P340,000. On this date, S Company had Capital Stock of P150,000 and Retained Earnings of P100,000. An examination of S Company’s

assets and liabilities revealed that book values were equal to market values for all except the following:

	Book value	Market value
Plant and equipment (net)	300,000	400,000
Merchandise inventory	80,000	100,000

The plant and equipment had an expected remaining life of 5 years, and the inventory should be sold in 20x9. P Company’s income was P250,000 in 20x9 and P290,000 in 20x0. S Company’s income was P120,000 in 20x9 and P 180,000 in 20x0. S Company paid cash dividends of P50,000 in 20x9 and P60,000 in 20x0.

P Company uses the cost method in accounting for its investment in stocks of S Company.

Requirements:

1. Calculate the investment income of P Company  

      from S Company in 20x9 and in 20x0.

2. Elimination entries for consolidated statement working papers on January 1, 20x9, December 31, 20x9 and December 31, 20x0.

3. Calculation of minority interest in net income of subsidiary for 20x9 and 20x0

4. Calculation of consolidated net income for 20x9 and 20x0.

5. Calculation of minority interest in net assets as of January 1, 20x9, December 31, 20x9 and December 31, 20x0.