On January 1, 2020, Entity A acquired 70% of outstanding ordinary shares of entity B at a price of 210,000. on the same date, the net assets of entity B were reported at 260,000. On january 1, 2020 entity A reported retained earnings of P2,000,000 while entity B reported retained earnings of P200,000.

All assets and liabilities of entity B are fairly valued except machinery which is undervalued at 80,000 and inventory which is overvalued by 10,000. The said machinery has remaining useful life of four years while 40% of the said inventory remained unsold at the end of 2020.

For the year ended December 31, 2020, Entity A reported net income of 1,000,000 and declared dividends of 150,000 in the separate financial statements while entity B reported net income of 150,000 and declared dividends of 20,000 in the separate financial statements.

Entity A accounted the investment in Entity B using cost method in the separate financial statements.

1. What is the non-controlling interest in net assets on december 31, 2020?

a. 124,800

b. 130,200

c. 126,000

d. 133,800

1. What is the consolidated net income attributable to parent shareholders for the year ended December 31,2020?

a. 1,102,200

b. 1,162,200

c. 1,141,200

d. 1,095,200

1. What is the amount of consolidated retained earnings on December 31, 2020?

a. 3,012,200

b. 2,991,200

c. 2,952,200

d. 2,945,200