Potasium Co. bought 53.91% of the outstanding common shares of Calcium Co. for cash worth P76,215.52 and Potasium Co. common shares. On this date, Potasium Co. common shares have a market value of P61.14 a share respectively. Calcium Co. common shares drop to P52.88 per share right after the acquisition. On this date (January 1 2009), Calcium Co.'s stockholders' equity consisted of the following: Share Capital (par 25) 976,409.00 Share Premium 737,476.88 Retained Earnings 499,199.54 The book values of , Calcium Co.'s assets and liabilities approximate fair value except for the following: Book Value Fair Value Notes Current Assets 1,183,071.16 1,803,960.58 The excess was due to inventory with book value of P100,000. Half was sold in 2010, the rest were deemed obsolete by 2011 and was written off Plant Assets 7,823,014.63 7,073,431.09 The excess was due to two assets: Equiipment with excess of P200,000. It was depreciated using the straightline method for 8 years. Depreciation was always charged to Operating Expenses. Land had an excess of P250,000. The land was subsequently sold to a 3rd party company during 2011. You noted the following details: 1. On January 31 2009, Calcium Co. sold inventory to Potasium Co.. The cost of inventory is P250,000 on a gross margin on cost of 25%. 10% remains in ending inventory. All remaining inventory were sold to 3rd parties by 2010. 2. On June 30 2009, Calcium Co. bought 2,000, P1,000 face value bonds of Peach from the open market at a yield of 10%. The bonds were initially issued at 12% on January 1, 2009. It pays semiannual coupons pegged at 11%. for the next four years every June 30 and December 31. Calcium Co. intends to hold the investment to maturity 3. On December 31, 2010, Potasium Co. sold two pieces of equipment to Calcium Co. with a combined purchase cost of P750,000 for P300,000. It was originally depreciated over 8 years when it was bought on June 30, 2005. Calcium Co. estimates useful life of 5 years from December 31, 2009. 4. During 2010, Potasium Co. sold inventory to Calcium Co.. The intercompany sales were P400,000 on a gross margin of 40%. Only 40% were sold. Three-fourhts of the remaining inventory was sold in 2011. The rest were sold in 2012. 5. During 2010, Calcium Co. sold inventory to Potasium Co.. The intercompany sales were P200,000 on a gross margin on cost of 25%. Only 75% were sold. The rest were sold in 2011. The following shos the financial statements of Potasium Co. and Calcium Co. as of/for the period ending December 31, 2011. What is the Consolidated Financial Statements (except for cash flows) as of/for the period ending December 31, 2011. Potasium Co. Calcium Co. Sales (2,302,840.69) (1,462,361.11) CGS 992,082.55 825,972.76 Opex 200,627.77 180,300.79 Int Exp, net 50,039.88 33,610.44 Other exp, net 341,979.25 255,000.00 Net Income (718,111.24) (167,477.12) STATEMENT OF RETAINED EARNINGS Beg RE (1,100,726.62) (999,265.16) Net Income (718,111.24) (167,477.12) Dividends 144,470.20 39,506.25 End RE (1,674,367.66) (1,127,236.03) Beg NCI Net Income Dividends End NCI BALANCE SHEET Current Assets 1,822,025.89 1,446,963.63 PPE 6,735,536.25 5,163,897.91 Inv in Sub 1,148,319.77 - Other Assets 625,622.38 2,382,675.61 GW Total 10,331,504.29 8,993,537.16 Current Liab (847,668.75) (1,609,693.79) Bonds Payable (4,498,851.71) (1,857,881.91) Other NCL (473,368.59) (2,175,474.76) Share Capital (2,048,970.40) (976,409.00) Share Premium (1,958,108.31) (737,476.88) UGL (222,601.95) (100,000.00) RE (281,934.59) (1,536,600.83) NCI Total (10,331,504.29) (8,993,537.16)