PROBLEM 2 (INTERCOMPANY SALE OF PPE) On January 1, 20x1, Bright Co. acquired 75% interest in Dull Co. for P180,000. On this date, the carrying amount of Dull's net identifiable assets was P160,000, equal to the fair value. NCI was measured using the proportionate share method. The financial statements of the entities on December 31, 20x1 show the following information: Bright Co. Dull Co. ASSETS Investment in subsidiary (at 180,000 0 cost) Equipment - net 400,000 190,000 Other assets 200,000 45,000 TOTAL ASSETS 780,000 235,000 LIABILITIES AND EQUITY Liabilities 70,000 25,000 Share Capital 600,000 100,000 Retained Earnings 110,000 110,000 Total Equity 710,000 210,000 TOTAL LIABILITIES AND EQUITY 780,000 235,000 Revenues 300,000 80,000 Depreciation Expense (40,000) (12,000) Other Expenses (32,000) (18,000)