1. On January 1, Adam Company acquired 90% of Project Company in exchange for 5,400 shares of P100 par common stock having a market value of P1,206,000. Parent and Subsidiary condensed Statements of Financial Position on January 1, were as follows:

Adam Co. Project Co.

Assets:

Cash P 309,000 P 374,000

Accounts Receivable. Net 342,000 91,000

Inventories 229,000 161,000

Equipment, net 1,790,000 400,000

Patents - 100,000

Total Assets P 2,670,000 P 1,126,000

Liabilities and Equity:

Accounts payable P 40,000 P 66,000

Bonds payable 1,000,000 -

Common Stock, P100 par 1,000,000 500,000

Additional Paid-in Capital 150,000 150,000

Retained Earnings 480,000 410,000

Total Liabilities and Equity P 2,670,000 P 1,126,000

At the date of acquisition (under Full Goodwill Approach), all assets and liabilities of the Project Company have book value approximately equal to their respective market values except the following as determined by appraisal as follows:

Inventories (FIFO method) P171,000

Equipment (net-remaining life of 4 years) 480,000

Patents (remaining life of 10 years) 130,000

For the year ended December 31, the affiliated companies reported the following results of operations:

Dividends paid Net Income

Adam Company P 150,000 P302,000

Project Company 40,000 94,000

In the consolidated working papers, compute for the following based on the above information:

1. The amount of Goodwill on January 1 (attributable to Controlling Interest).

2. The retained Earnings on January 1.

3. Intangible Assets on December 31.

4. The dividend income for the year.

5. Amortization of allocated excess during the first year.

6. Net Income on December 31.

7. Profit attributable to equity holders of parent company on December 31.

8. Retained Earnings on December 31.

9. Non-controlling Interest, December 31

10. The consolidated Stockholders Equity on December 31