CHAPTER 3: CONSOLIDATION - SUBSEQUENT TO DATE OF ACQUISITION Page | 127 20. On January 2, 2020, Galatians Company acquired 80% investment in Philippians Company. The acquisition cost was equal to Galatians equity in Philippians net assets on that date. The retained earnings of Galatians and Philippians are P500,000 and P100,000, respectively. During 2020, Galatians had net income of P200,000, which included its equity in Philippians earnings, and declared dividends of P50,000; Philippians had net income of P40,000 and declared dividends of P20,000. On December 31, 2020, the consolidated retained earnings must be: P650,000 . P666,000 C, P770,000 d. P766,000 21. Patriotism Company purchased 70% of Strength Company on January 2, 2020 for P420,000, At that date Strength had inventory and plant assets with market values greater than book values in the amount of P50,000 and P90,000, respectively. The inventory and plant assets were assigned to have a remaining life of six months and five years, respectively. Strength Company has 2020 income and dividends of P160,000 and P60,000, respectively and 2021 income and dividends of P210,000 and P80,000, respectively. The balance of non-controlling interest account on December 31, 2021 must be: a P223,200 b. P276,000 C. P169,200 d. P136,800