On January 2, 2020, Fever company acquired 60% of the outstanding shares of Benz Inc. resulting to an income from acquisition in the amount of P330,000. During 2020 and 2021, intercompany sales amounted to P6,800,000 and P9,400,000, respectively. Fever company consistently recognized a 30% gross profit on sales while Benz Inc. had a 40% gross profit on sales. The inventories of the buying affiliate were as follow: 3/4 of the beginning inventory came from intercompany transactions and 1/3 of the ending inventory came from outsiders. The December 31, 2020 inventory of Fever and Benz amount to P840,000 and P350,000, respectively. The december 31, 2021 inventory of Fever and Benz amount to P570,000 and P150,000, respectively.

On September 1, 2020, Benz Inc., purchased a piece of land costing P3,500,000 from Fever company for P5,250,000. On November 2, 2021, the buying affiliate sold this land to Jam Co. for P7,500,000. On the other hand, on May 1, 2021, Benz Inc., sold a machinery with a carrying value of P430,000 and remaining life of 4 years to Fever company for P190,000. Benz Inc. declared dividends in 2021 in the amount of P600,000. Separate statement of comprehensive income for the two companies for the year 2021 follow:

Fever Company Benz Inc.

Sales P 21,500,000 P 10,000,000

COGS ( 13,500,000 ) ( 6,200,000 )

Gross profit 8,000,000 3,800,000

Operating expenses ( 3,240,000 ) ( 1,100,000 )

Operating profit P 4,760,000 P 2,700,000

Gain on sale of land 2,250,000

Loss on sale of machinery (240,000)

Dividend revenue 450,000 110,000

Net income P5,210,000 P 4,820,000

Compute the following amounts for/as of December 31, 2021

1. Consolidated Gross Profit

a. 11,651,250

b. 5,148,750

c. 11,948,750

d. 3,351,250

1. Consolidated Net income attributable to Parent

a. 11,768,750

b. 9,720,750

c. 10,018,750

d. 11,118,750

1. Consolidated operating expense

a. 4,340,000

b. 4,140,000

c. 4,380,000

d. 4,300,000

Problem 3: A summary of the separate income statement of Techno corporation and its 75% owned subsidiary, Duo company, for 2021 were as follows:

Techno Duo

Sales P 9,000,000 P 5,400,000

Gain on sale of equipment 180,000 ------

COGS (3,600,000) (2,340,000)

Depreciate expense (900,000) (540,000)

Other expenses (1,440,000) (720,000)

Income from operations P3,240,000 P 1,800,000

There was an upstream sale of equipment with a book value of P720,000 for P1,170,000 on January 2, 2019. At the time of the intercompany sale, the equipment had a remaining useful life of 5 years. Techno uses straight-line depreciation. The buying affiliate used the equipment until December 31, 2021, at which time it was sold to Genex for P648,000.

What is the amount of net profit attributable to non-controlling interest for 2021?

a. P517,500

b. P472,500

c. P450,000

d. P562,500