1. Company acquired 80% of Hufflepuff Company on January 2, 2019. The difference between the implied and book value of net assets of Hufflepuff on the date of acquisition were as follows:

Land	50,000
Equipment (10 years life)	60,000
Inventory	40,000

Hufflepuff reported retained earnings of P260,000 on January 1, 2022, and P320,000 on December 31, 2022.

Hufflepuff reported net income of P90,000, and declared dividends of P30,000 in 2022. Also, Gryffindor reported net income using the cost method in 2022 and paid dividends of P25,000. The retained earnings of Gryffindor on December 31, 2022 is P2,700,000. The sales and cost of sales together with the intercompany sales made during 2022 are as follows:

	Gryffindor Company	Hufflepuff Company
Sales	3,000,000	1,500,000
Cost of sales	1,500,000	900,000
Net Income	550,000	90,000
Intercompany sales:
Gryffindor to Hufflepuff	400,000
Hufflepuff to Gryffindor		300,000

There were no intercompany sales prior to 2021.

During 2022 the following intercompany transfer of fixed assets occur:

• On January 1, Hufflepuff sold a machinery with cost of P120,000, originally purchased last January 3, 2018 with 8 years useful life. Selling price is P40,000.

• On June 30, Gryffindor sold an equipment with book value of P60,000 for P100,000. Remaining useful life of the equipment is 5 years.

Intercompany inventories held by the affiliated companies are shown below:

	Gryffindor Company	Hufflepuff Company
January 1, 2022	30,000	60,000
December 31, 2022	70,000	40,000

Q1. Compute the consolidated gross profit.

Q2. Compute the net income attributable to the parent