PROBLEM S Philippians Company purchased 60% of Seth Company on January 2, 2022 for P3,930,000 when Seth's book value was P6,300,000. On that day, the market value of the net assets of Seth equaled their book values with the following exceptions: Book value Market value Remaining life Buildings P1,850,000 P1,600,000 20 years Equipment 300,000 500,000 10 years Seth Company reported the following for 2022 and 2023: Net income (loss) Dividends 2022 P 750,000 P100,000 2023 150,000 50,000 Required J. How much is the consolidated net income for 1021 and 2013? 2. Using the proportionate method, how much is the non-controlling interest as December 31, 2023? Using the fair value method, how much is the non-controlling interest as December 31, 2023? PROBLEM 6 On January 2, 2022, Paul Company acquired 80% interest in Micah Company for P4, 125,000 cash. On this date, the outstanding ordinary share capital and accumulated profits of Paul Company and Micah Company are as follows: Paul Micah Ordinary share capital P 2,250,000 1,312,000 Share premium 1,750,000 Accumulated profits (losses) 5,520,000 3,187,500 There was no issuance of ordinary shares during the year. Non-controlling interest is initially measured at fair value. Fair value of the following assets of Micah exceeded their book values as follows: Inventories, P210,000; Property and equipment (useful life, 10 years), P127,500. All other assets and liabilities are fairly valued. Goodwill if any is not impaired. On December 31, 2022, the two companies reported the following operating results: Paul Micah Net income 1,825,000 R 975,000 Dividends paid 525,000 262,500 Required I. How much is the non-controlling interest in net income of subsidiary? What is the consolidated net income attributable to parent share holders? 3. How much consolidated retained earnings should be reported on December 31, 2022? 4. How much is the non-controlling interest in net assets of subsidiary? 5. Compute the Consolidated Equity as of December 31, 2022