On January 1, 2022, Company A acquired 85% of outstanding shares of Company B. The consideration transferred includes cash payment of P2,000,000 and issuance of 50,000 shares with a market price of P45 per share.

The book value of Company Bs identifiable net assets approximate its fair value, except for the following:

• Merchandise inventorys fair value is lower than the book balance by 150,000.
• Equipment-A, with 2 years remaining useful life, costing P300,000 is understated by P50,000.
• Land with a fair value of P500,000 is recognized in the books amounting to P350,000.

The following events happened to Company B:

• Equipment-A was sold in June 30, 2023 for P320,000.
• 60% of merchandise inventory were sold in 2022.
• There is no movement as to the ordinary shares of Company B during the year.

The unadjusted trial balance as of December 31, 2022 were as follows:

Company A		Company B
Cash	2,240,000	1,800,000
Trade Receivables	1,000,000	960,000
Merchandise Inventory	2,320,000	740,000
Furniture, net	820,000	540,000
Equipment, net	1,540,000	660,000
Land	880,000	3,000,000
Trademark, net	60,000	240,000
Investment in Company B	4,250,000
Cost of Good Sold	5,500,000	3,840,000
Expenses	3,240,000	1,620,000
Dividends Declared	1,280,000	1,920,000
TOTAL	23,130,000	15,320,000
Liabilities	1,570,000	1,700,000
Ordinary shares	3,600,000	2,700,000
Retained Earnings 1/02/22	5,200,000	1,860,000
Sales	10,730,000	7,940,000
Gain on sale of furniture	50,000	120,000
Dividend Income	1,980,000	1,000,000
TOTAL	23,130,000	15,320,000

Goodwill, if any, is impaired by 100,000 in 2022.

How much is the consolidated net income attributable to parent in December 31, 2022?

a. 5,397,000

b. 5,428,875

c. 5,418,250

d. 5,386,375