On January 2, 2013, Phillips Corporation purchase 80% of Signage Company's outstanding shares for P648,000. P30,000 of the excess is attributable to goodwill and the balance to an equipment with an economic life of ten years. Non-controlling interest is measured at its fair value on date of acquisition. On the date of acquisition, stockholders' equity of the two companies were as follows:

Phillips Corporation

Signage Company

Ordinary shares

P1,050,000

P 240,000

Retained earnings

1,560,000

420,000

On December 31, 2013, Signage Company reported net income of P105,000 and paid dividends of P36,000 to Philips. Philips reported from its separate operations of P285,000 and paid dividends of P138,000. Goodwill had been impaired and should be reported at P6,000 on December 31, 2013.

The non-controlling interest in profit of Signage Company on December 31, 2013 amounts to 13,800 and the consolidated profit attributable to parent shareholders on December 31, 2013 amounts to 340,200.

True or False