On January 1, 2021, merma Corp. purchased 80% of the outstanding shares of sand Co. at a cost of P1,620,000. On that date, sand had P600,000 of ordinary shares and P1,000,000 of retained earnings. All the assets and liabilities of sand Co. have book values approximately equal to their respective market values, except for equipment with fair market value increase of 50,000 (remaining life of 4 years). For 2022, the operating results of merma and sand are: Net income P1,000,000 and P500,000, respectively; Dividends paid, P200,000 and P80,000, respectively. During 2022, merma Corp. sold merchandise to sand at 120% of its cost, the same as that used in 2021 sales. The inventory of sand on January 1, 2022 included P19,200 of merchandise purchased from merma Corp. in 2021, while its December 31, 2022 inventory included P36,000 of merchandise purchased from merma Corp. in 2022. The Retained Earnings beg of sand in 2022 was P1,200,000. merma uses the proportionate method in measuring NCI. Impairment loss was estimated at P20,000 and 30,000 in 2021 and 2022, respectively, based on partial goodwill recognized. How much is the consolidated net income attributable to NCI?
On January 1, 2021, merma Corp. purchased 80% of the outstanding
shares of sand Co. at a cost of P1,620,000. On that date, sand had
P600,000 of ordinary shares and P1,000,000 of retained earnings. All
the assets and liabilities of sand Co. have book values approximately
equal to their respective market values, except for equipment with fair
market value increase of 50,000 (remaining life of 4 years). For 2022, the
operating results of merma and sand are: Net income P1,000,000 and
P500,000, respectively; Dividends paid, P200,000 and P80,000,
respectively.
During 2022, merma Corp. sold merchandise to sand at 120% of its cost,
the same as that used in 2021 sales. The inventory of sand on January
1, 2022 included P19,200 of merchandise purchased from merma Corp. in
2021, while its December 31, 2022 inventory included P36,000 of
merchandise purchased from merma Corp. in 2022. The Retained
Earnings beg of sand in 2022 was P1,200,000. merma uses the
proportionate method in measuring NCI. Impairment loss was estimated
at P20,000 and 30,000 in 2021 and 2022, respectively, based on partial
How much is the consolidated net income attributable to NCI?
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