How come the Net income by the parent from its own operation become 700, 000 and why 24, 000 deducted from net income? Where did the 24,000 came from?

The Problem:

C. Controlling interest in Consolidated MD d. Non-controlling Interest in Subsidiary's Net Income e. Consolidated Net Income XIII - Downstream and Upstream Sales 18 acquired 70 percent of BW on June 30. 20x4. Based on BW's acquiition-date ve. an intangible of P300,000 was recognized and a being amortized at the role of P10.000 per year. The 20x5 financial statements are as follows: W Sales. Coil of gooch load . . Operating expone Dividend income ... Retained gamingi, 1/1/20.5........... P/1,300.DO0 (200.000) 190.900 Retained gamingi. 12/31/2015....+14 12 PIJ.490.0001 Cath and receivable. . . . . E. IS. .. . "FF.) 400.000 298.000 Inventepont in BW ... 902.000 1,000.000 Accumulated depreciation ....... (300.0001 C. 2.300.000 Uabilities .J.4. .. . P 1600.000) Common stock :.. . ... 1300.000 Retained earnings..... BB sold BW inventory costing P72.000 during the last six months of 234 P120.000, At year-end. 30 percent remained. BB sells BW inventory cook P200,000 during 20x5 for P250,000. At year-end, 20 percent is left. Required: 1. With these facts, determine the consolidated balances for the account a. Solet 0. Non controlling interest in Consolidated Net har b. Cost of Gooch Sold 1. Controlling interest in Consolidated Net income C. Operating Expenses g. Comsolidated Net Income d, Inventory I. Dividends Income L Non controling interest in Jubildiary 129134 2. Assuming that all intercompany transfers were made from BW to determine the consolidated balances for the accounts; e. Non-controling Interest in Consolidated Net incom by Cost of Gooch Sola I. Controlling interest in Consolidated Net income c. Operating Expenses g. Cornoldated Nail income d. Inventory h. Deldench income Non-controding Interest in Subsidiary. 1201734 XIV - Downstream and Upstream Sales Pepper Company acquired 80% of the voting stock of Salt Company January 1, 201 1. when Salt Company's retained earnings amounted to P150 The difference between the implied and book value on the date of acquito was allocated as follows: Land....- .P 50.000 Equipment [10-year Ife]..._. are 20.090 Goodwill.meth 40.009 Salt Company reported retained earnings of P260,000 on January 1. 2014 4 P320.000 on December 31, 2014. Salt Company reported net income of Pas and declared dividends of P30.000 in 2014. Also. Pepper reported net income using cost method in 2014 in the amount of P724,000 will P724.000 with a dividends pod p25,000 and retained earnings on December 31, 2014, of p3,500.000. The sole cost of soles and intercompany sales made during 2014 are as follows Pepper Co. Salt.Co. :.. P 2.500.000 P1-200.090 Cost of sold1.. 1.250.000 875.000 Intercompany tolen: Pepper to Soll.... 320.000 Soil to Pepper ...... 290 000 there were no intercompany sales prior to 2013 and unrealized profits of january 1 and on December 31, 2014, resulting from intercompany soles are " summarized below: Unseated Intercompany Proll on sales by Salt Company to Pepper Company 1/1/14 17/31/14 Sales by Pepper Company to Salt Company P 10.000 P ACOX 15000 20 010 Required: 1. The Profit Attributable to Equity Holders of Parent/Controlling Interes! (Parent's Interests) in Consolidated Net income for 2014 2. The Non-controlling interest in net income for 2014 3. The Consolidated/Group Net Income for 2014Amortization of equipment: P20,000 / TU years = PZUUU RPBI of S (downstream sales).......mmm. P15,000 RPBI of P (upstream sales)..... 10,000 UPEI of $ (downstream sales). 20,000 UPEI of P (upstream sales) ...... 5,000 Consolidated Net Income for 2014 P Company's net income from own/separate operations (P/24,000 - P24,000 P700,000 Realized profit in beginning inventory of $ Company (downstream sales) 15,0000 Unrealized profit in ending inventory of $ Company (downstream soles)... (20,00 01 P Company's realized net income from separate operations mam P695,000 5 Company's net income from own operations..... P 90,000 Realized profit in beginning inventory of P Company (upstream sales) 10,000 Unrealized profit in ending inventory of P Company (upstream soles] ( 5.000) $ Company's realized net income from separate operations".mine P 95.000 95.000 Total P790.000 Less: Amortization of allocated excess.newton 2,000 Consolidated Net Income for 2014 P788,000 Less: Non-controlling Interest in Net Income* * 18.600 Controlling Interest in Consolidated Net income or Profit attributable to equity holders of parent - 2014....-- P749.400 "that has been realized in transactions with third parties