Pepper Company acquired 80% of the voting stock of Salt Company on January 1, 2018, when Salt

Company's retained earnings amounted to P150,000. The difference between the implied and book value

on the date of acquisition was allocated as follows:

Land......................................................................................................P 50,000

Equipment (10-year life)................................................................................ 20,000

Goodwill................................................................................................ 40,000

Salt Company reported retained earnings of P260,000 on January 1, 2021, and P320,000 on December 31,

2021.

Salt Company reported net income of P90,000 and declared dividends of P30,000 in 2021. Also, Pepper

reported net income using cost method in 2021 in the amount of P724,000 with a dividends paid of P25,000

and retained earnings on December 31, 2021, of P3,500,000. The sales cost of sales and intercompany sales

made during 2021 are as follows:

Pepper Co. Salt Co.

Sales............................................................................................... P 2,500,000 P1,200,000

Cost of sales.................................................................................... 1,250,000 875,000

Pepper Company acquired 80% of the voting stock of Salt Company on January 1, 2018, when Salt

Company's retained earnings amounted to P150,000. The difference between the implied and book value

on the date of acquisition was allocated as follows:

Land......................................................................................................P 50,000

Equipment (10-year life)................................................................................ 20,000

Goodwill................................................................................................ 40,000

Salt Company reported retained earnings of P260,000 on January 1, 2021, and P320,000 on December 31,

2021.

Salt Company reported net income of P90,000 and declared dividends of P30,000 in 2021. Also, Pepper

reported net income using cost method in 2021 in the amount of P724,000 with a dividends paid of P25,000

and retained earnings on December 31, 2021, of P3,500,000. The sales cost of sales and intercompany sales

made during 2021 are as follows:

Pepper Co. Salt Co.

Sales............................................................................................... P 2,500,000 P1,200,000

Cost of sales.................................................................................... 1,250,000 875,000

Intercompany sales:

Pepper to Salt..................................................................... 320,000

Salt to Pepper.................................................................... 290,000

There were no intercompany sales prior to 2020 and unrealized profits on January 1 and on December 31,

2021, resulting from intercompany sales are as summarized below:

Unrealized Intercompany Profit on

Resulting from: 1/1/21 12/31/21

Sales by Salt Company to Pepper Company.............................. P 10,000 P 5,000

Sales by Pepper Company to Salt Company.............................. 15,000 20,000

Required: Determine:

1. The Profit Attributable to Equity Holders of Parent/Controlling Interest (Parent's Interests) in

Consolidated Net income for 2021 -

2. The Non-controlling interest in net income for 2021 -

3. The Consolidated/Group Net Income for 2021 -

4. The Consolidated Retained Earnings, December 31, 2021 -

5. The Consolidated sales for 2021 -

6. The Consolidated cost of sales for 2021 -

7. The Consolidated gross profit for 2021 -