PETRON Company issued $75,000$ new shares of its $P5$ par value ordinary shares valued at $P12$ per share in

exchange for $90\%$ of outstanding shares of SHELL Company on March $31,2022.$ The fair value and book

value of SHELL's identifiable assets and liabilities were the same except inventory which was understated by

P$30,000$ and equipment which was overstated by P$90,000($remaining useful life of $10$ years$).$ The

stockholders' equity of PETRON and SHELL at the date of acquisition were as follows $($see image below$).$

PETRON opted to measure $NCl$ using the fair value method. At the end of December $31,2022,$ PETRON

reported a net income of $P510,000$ and paid dividends of P$100,000$ while SHELL reported a net income of

P$350,000($April $1,2022$ to December $31,2022)$ and paid dividends of P$80,000.$ The goodwill, if any, was

impaired by $20\%.$

How much is the Consolidated Net Income?

a$.P735,000$

b$.$ P$732,750$

c$.$ P$779,250$

d$.$P$764,750$

How much is the Goodwill to be presented in the consolidated financial statements at December $31,$

$2022?$

a$.P128,000$

b$.P160,000$

c$.P150,000$

d$.$P$135,000$

How much is the Non$-$Controlling Interest at December $31,2022?$

a$.$ P$126,125$

b$.P124,675$

c$.P121,700$

d$.$ P$121,475$

How much is the Consolidated Retained Earnings at December $31,2022?$

a$.P865,300$

b$.$ P$905,125$

c$.$ P$863,275$

d$.$ P$892,075$