ALLIED CORP has the following investment with AXIS CORP:

January 1, 2018 P300,000 10% interest

January 1, 2019 P500,000 30% interest

On January 1, 2020, ALLIED Corp acquired additional shares from AXIS Corp making its total interest to 75%. The fair value of the previously held shares is P1,000,000 and these are measured at FVPL prior to January 1, 2020. ALLIED Corp opted to value NCI at its proportionate share.

AXIS financial records on January 1, 2020 are as follows:

Cash 200,000

Accounts receivable 300,000

Inventory 500,000

Equipment 1,200,000

Accumulated depreciation (300,000)

Goodwill 300,000

Other assets 300,000

Accounts payable 600,000

The carrying amount of AXIS assets and liabilities approximates its fair values at acquisition date except for inventory where it is P50,000 greater than its fair values and one of its equipment is P200,000 less than its fair value. It has a remaining useful life of six (6) years.

As of December 31, 2020, financial statements of AXIS and ALLIED are shown below:

AXIS ALLIED

Cash 1,010,000 310,000

Accounts receivable 1,380,000 570,000

Inventory 800,000 900,000

Equipment 1,100,000 1,500,000

Accumulated depreciation (500,000) (400,000)

Investment in subsidiary ?

Goodwill 300,000

Other assets 330,000 170,000

Accounts payable 770,000 1,030,000

Share capital 1,200,000 2,500,000

Retained earnings 2,450,000 1,032,500

Sales 4,750,000 2,800,000

Cost of goods sold 2,850,000 1,680,000

Operating expense 150,000 500,000

Other income - Unrealized gain 200,000

During the year, the following intercompany transactions occurred between the two companies:

ALLIED sold inventory to AXIS for P900,000 on account with a mark-up on cost of 20%. During the year, AXIS paid 70%

AXIS sold inventory to ALLIED for P1,200,000 on account using the usual GP rate it charges to its outside customers. During the year, AXIS was able to collect 60% from ALLIED
On October 1, 2020, AXIS sold one of its equipment to ALLIED Corp for P300,000. The equipment was purchased by AXIS on July 1, 2018 for P400,000 and has an estimated useful life of 5 years. The gain on sale was erroneously recorded as

As of December 31, 2020, AXIS holds 30% of inventory purchased from ALLIED , while ALLIED sold to outside customers half of its purchases from AXIS

QUESTIONS:

1.How much was the consideration transferred?

2.What was the amount of good will recognized in the acquisition?

3.What amount of consolidated accounts receivable should be reported in the SCP?

4.What amount of inventory should be reported in the consolidated SCP?

5.How much should be reported as Equipment (net of acc. dep.) should be reported in the consolidated SCP?

6.How much should be reported as consolidated goodwill?

7.What is the consolidated accounts payable ?

8. What should be the consolidated retained earnings ?

9. How much should reported as NCI in the consolidated SFP?

10. What is the consolidated sales ?

11.What is the consolidated cost of goods sold ?

12. How much is the consolidated net income attributable to parent ?