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On January 1, 2019, 90% of the outstanding stocks of Anak Company was purchased by Tatay Company for P2,880,000. At that time, the book value

On January 1, 2019, 90% of the outstanding stocks of Anak Company was purchased by Tatay Company for P2,880,000. At that time, the book value of Anak Company's net assets equaled to P2,800,000.The excess is attributable to equipment with a 10-year life.

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The following trial balances of Tatay Company and Anak Company were prepared on December 31, 2019. Tatay Company Arak Company Debit Credit Debit Credit Cash P 810 000 P 170/000 Accounts Receivable 4251000 445 000 Inventory 600 000 275/000 Property. Plant. and Equipment. net #300 000 2.209010 Investment in Anok Company Accounts Payable P 36.000 P 100 000 Common Stock, P10 par 1.000.000 400 000 Additional Paid-in Capital 1.500.000 200 000 Retained Earnings 5.500,000 2.200 000 Dividends Declared 210/000 Sales 12.000.000 1 200/000 Cout of Goods Sold 7000 000 750 000 Operating expenses 4 210 000 Dividend Income 189.000 P 20.2251000 P 20 225.000 PA, 100 000 P4 100 000

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