What is the consolidated net income

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Question - On January 1, 2019, Entity A acquired 60% of outstanding ordinary shares of Entity B at a gain on bargain purchase of P40,000. For the year ended December 31, 2020, Entity A and Entity B reported sales revenue of P2,000,000 and P1,000,000 in their respective separate income statements. At the same year, Entity A and Entity B reported cost of goods sold of P1,200,000 and P700,000, respectively.

During 2019, Entity A sold inventory to Entity B at a selling price of P280,000 with gross profit rate of 40% based on cost. On the other hand, Entity B sold inventory to Entity A at a selling price of P400,000 with gross profit rate of 30% based on sales during 2020.

On December 31, 2019, 25% of the goods coming from Entity A remained in Entity B's inventory but all were eventually sold to third persons during 2020. As of December 31, 2020, 40% of the goods coming from Entity B were eventually sold to third persons.

For the year ended December 31, 2020, Entity A reported net income of P500,000 while Entity B reported net income of P200,000 and distributed dividends of P50,000. Entity A accounted for its investment in Entity B using cost method in its separate financial statements.

Required -

What is the consolidated sales revenue for the year ended December 31, 2020?

What is the consolidated gross profit for the year ended December 31, 2020?

What is the non controlling interest in net income for the year ended December 31, 2020?

What is the consolidated net income atttibutable to parent's shareholders for the year ended December 31, 2020?

Reference no: EM132741243

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