Pinoy Company purchased 75% interest of Smart Company by paying 250,000 cash, issuing shares with a fair value of 1,600,000 and issuing a bond debenture. with a fair value of 380,000 on January 2, 2021. The stockholders' equity of Pinoy and Smart at the date of acquisition were as follows:

Pinoy: Share Capital 1,600,000 Share Premium 900,000 Retained Earnings 4,860,000

Smart: Share Capital 600,000 Share Premium 960,000 Retained Earnings 1,740,000

The book value of the net assets of Smart reflected the fair value except that the inventory was overvalued by 30,000 and the equipment with remaining useful life of 5 years was over depreciated by 75,000. The parent elected to measure NCI using proportionate method. The goodwill, if any, should be impaired by 20% at the end of the year. Below is the result of operations in 2021:

Pinoy: Sales 7,500,000 Cost of Sales 5,000,000 Dividend Revenue 150,000 Net Income 800,000

Smart: Sales 4,500,000 Cost of Sales 3,000,000 Dividend Revenue 0 Net Income 500,000

Intercompany sales during the year are as follows:

Pinoy to Smart: Cost 2,496,000 Selling Price 3,900,000 Sold at year-end 80%

Smart to Pinoy: Cost 1,650,000 Selling Price 2,750,000 Sold at year-end 75%

1. How much is the Net Income Attributable to Parent?

2. How much is the Consolidated Gross Profit in 2021?