On January 1, 2019, Petrol Co. Acquired 80% interest in Shell Inc, by issuing 5,000 shares with the fair value of P60 per share and par value of P40 per share. The financial statements of Petrol Co. And Shell Inc. Immediately before the acquisition are shown below:

PETROL CO.SHELL INC.

Cash40,00020,000

Accounts Receivable120,00048,000

Inventory160,00092,000

Equipment800,000200,000

Accumulated depreciation(80,000)(40,000)

Total assets1,040,000320,000

Accounts payable80,00024,000

Bonds payable120,000-

Share Capital 480,000200,000

Share premium160,000-

Retained earnings200,000 96,000

Total liabilities and equity1,040,000320,000

On January 1, 2019 the fair value of the assets and liabilities of Shell Inc. Were determined by appraisal, as follows

Carrying amountFair Value

Cash20,00020,000

Accounts receivable48,00048,000

Inventory92,000124,000

Equipment200,000240,000

Accumulated depreciation(40,000)(48,000)

Account Payable(24,000)(24,000)

Total net assets296,000360,000

The equipment has a remaining useful life as of 4 years from January 1, 2019.

Case #1. NCI measured at proportionate share of parent

Petrol Co. Elects to measure non-controlling interest as its proportionate share in Shell Inc. Net identifiable net assets.

1.How much is the consolidated total assets as of January 1, 2019?

2.How much is the consolidated total equity as of January 1, 2019?

Case#2. NCI measured at fair value.

Petrol Co. Elects the option to measure non-controlling interest at fair value and a value of P75,000 is assigned to the 20% non-controlling interest [(P300,000 / 80% ) x 20% = 75,000].

3.How much is the consolidated total assets as of January 1, 2019?

4.How much is the consolidated total equity as of January 1, 2019?