Problem 5: Superior company owns 60% of Uptown Corporation, which in turn owns 80% of Newton company. Uptown exercises control over Newton and Superior exercises control over Uptown. The following information is available:

Superior Company Uptown Company Newton Company

Income from continuing operations P 3,900,000 P2,690,000 P1,540,000

Cash dividends declared by: 250,000 180,000 110,000

Cash dividends from:

Associate(s) 75,000 50,000 -nil-

Other investments at FV -nil- 90,000 40,000

Net unrealized intercompany gains/(loss) P360,000 (220,000) 160,000

within current year income downstream downstream upstream

amortization relating to excess of FV over book (190,000) (140,000) -nil-

What is the consolidated net income attributable to Superior company stockholders?

a. 5,939,400

b. 8,893,600

c. 5,834,400

d. 5,901,600