Problem 3: Pepper Company acquired 80% of the voting stock of Salt Company on January 1, 2016, 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:

LandP50,000

Equipment (10-year)20,000

Goodwill40,000

Salt Company reported retained earnings of P260,000 on January 1, 2019, and P320,000 on December 31, 2019.

Salt Company reported net income of P90,000 and declared dividends of P30,000 in 2019. Also, pepper reported net income using cost method in 2019 in the amount of P724,000 with a dividends paid of P25,000 and retained earnings on December 31, 2019 of P3,500,000.

The sales, cost of sales and intercompany sales made during 2019 are as follows:

ParticularsPepper CoSalt Co

SalesP2,500,000P1,200,000

Cost of sales1,250,000875,000

Intercompany sales

Pepper to Salt320,000

Salt to Pepper290,000

There were no intercompany sales prior to 2018 and unrealized profits on January 1 and on December 31, 2019, resulting from intercompany sales are as summarized below:

ParticularsUnrealized Intercompany profit on

Resulting from1/1/1912/31/19

Sales by Salt to PepperP10,000P5,000

Sales by Pepper to Salt15,00020,000

Required: Determine the following:

1. The profit attributable to equity holders of parent/controlling interest (parent's interests) in consolidated net income for 2019 -
2. The non-controlling interest in net income for 2019 -
3. The consolidated/group net income for 2019 -
4. The consolidated retained earnings, December 31, 2019 -
5. The consolidated sales for 2019 -
6. The consolidated cost of sales for 2019 -

7. The consolidated gross profit for 2019 -