Question
The assets and liabilities of R were stated at their fair values when A acquired its 80% interest and the fair value method was used
The assets and liabilities of R were stated at their fair values when A acquired its 80% interest and the fair value method was used to initially measure the NCI. A uses the cost method to account for its investment in R. Net income and dividends for 2021 for the affiliated companies were:
| A Corp. | R Corp. |
Net Income | P105,000 | P31,500 |
Dividends paid | 63,000 | 17,500 |
Dividends Payable, 1/1 | 20,000 | 9,250 |
Dividends Payable 12/31 | 31,500 | 8,750 |
Retained Earnings of A Corp. in the separate FS at the beginning of the year is P420,000. End of the year evaluation indicates P3,000 impairment in goodwill.
The consolidated retained earnings at December 31, 2021 is:
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