WARRIOR Company

WARRIOR Company purchased 30% of Dale Company's ordinary shares on January 1, 2020. The purchase resulted in no goodwill or excess fair value.

• Dale sold goods costing 500,000 for 750,000 to WARRIOR in 2020. On December 31, 2020, the goods remained unsold by WARRIOR. In 2021, WARRIOR sold such goods to the regular customers.
• On January 1, 2020, Dale also sold machinery with carrying amount of P3,000,000 to WARRIOR for P4,200,000. The machinery's remaining life was 6 years.
• Dale reported net income of 3,500,000 and 2,500,000 in 2020 and 2021, respectively.

Question 1:What amount of equity in earnings of Dale should WARRIOR report for 2020?

Question 2:What amount of equity in earnings of Dale should WARRIOR report for 2021?

You