3. Palma Company acquired 80% of outstanding ordinary shares of Shera Company for P1,000,000 at the beginning of 2020. Book value of Shera Company's net assets is P1,000,000. Upon re-measurement of acquiree's net assets, it shows that inventory has a fair value higher by P40,000 than its book value and equipment with a fair value and book value of P450,000 and P360,000, with remaining life of five (5) years. Palma measures NCI at fair value. The fair value of NCI at the beg. of 2018 was P250,000. During the year Palma reported net income of P300,000 for the year ended December 31, 2020. Shera Company's net income for 2020 amounts to P120,000. Goodwill is impaired by P15,000. Shera sold inventory to Palma at 20% gross profit. Inventory amounting to P50,000 remained in the books of Palma. How much is the goodwill on the consolidated balance sheet on December 31, 2020 assuming that the corporations qualify as SMES? a. P105,000 b. P81,000 c. P86,400 P108 000 d

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.