CHAPTER 3: CONSOLIDATION - SUBSEQUENT TO DATE OF ACQUISITION Page | 112 PROBLEM 3 - 4 On January 2, 2020, Prayer Corporation purchase 80% of Singer Company's ordinary share for P810,000. P37,500 of the excess (sum of consideration and NCI less book value of net assets) is attributable to goodwill and the balance to depreciable asset with economic life of ten (10) years. Non-controlling interest is measured at fair value on date of acquisition. On the date of acquisition, shareholder's equity of two companies are as follows: Prayer Corporation Singer Company Ordinary Share P1,312,500 P300,000 Retained Earnings 1,950,000 525,000 On December 31, 2020, Singer Company reported net income of P131,250 and paid dividends of P45,000 to Prayer, Prayer reported earnings from its own operations of P356,250 and paid dividends of P172,500. Goodwill had been impaired and should be reported at P7,500 on December 31, 2020, Required ed What is the consolidated net income on December 31, 2020? What is the NCI in net income of Singer Company on December 31, 2020? What is the consolidated net income attributable to parent shareholders on December 31, 2020? d. How much consolidated retained earnings should be reported on December 31, 2020? What amount of NCI is to be presented in the consolidated Statement of Financial Position as of December 31, 2020? f. Compute the Consolidated Equity as of December 31, 2020