Problem on Intercompany sale of PPE

On January 1, 2021, ABC Co. acquired 75% interest in XYZ Co. for P180,000. On this date, the carrying amount of XYZ Co. net identifiable assets was P160,000 equal to fair value. Non-controlling interest was measured using the proportionate share method.

The financial statements of the entities on December 31, 2021 show the following information:

ASSETS		ABC Co.	XYZ Co.
Investment in subsidiary (at cost)		180,000	-
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

		ABC Co.	XYZ Co.
Revenues		300,000	80,000
Depreciation Expenses		(40,000)	(12,000)
Other Expenses		(32,000)	(18,000)
Gain on sale of Equipment		12,000	0
Profit for the year		240,000	50,000

Additional information:

• On January 1, 2021, right after the business combination, ABC Co. sold equipment with a historical cost of P120,000 and accumulated depreciation of P72,000 to XYZ Co. for P60,000. ABC Co. has been depreciating this equipment over a useful life of 10 years using the straight-line method. XYZ Co. decided to continue this accounting policy and depreciate the equipment over its remaining useful life of 4 years.
• No dividends were declared by either entity during 2021 and there is also no impairment of goodwill

Required: Prepare a consolidated statement of financial position and consolidated statement of profit or loss.