On July 1, 2019, Joltik Company purchased 80% of the outstanding shares of Galvantula Company at a cost of P4,000,000. On that date, Galvantula had P2,500,000 of capital stock and P3,500,000 of retained earnings. For 2019, Joltik had income of P1,400,000 from its separate operations and paid dividends of P750,000. For 2019, Galvantula reported income of P325,000 and paid dividends of P150,000. All the assets and liabilities of Galvantula have book values equal to their respective fair market values. Assume income was earned evenly throughout the year except for the intercompany transaction on October 1. On October 1, 2019, Joltik purchased a machinery from Galvantula for P500,000. The book value of the machinery on that date was P600,000. The loss of P100,000 is reflected in the income of Galvantula indicated above. The machinery is expected to have a useful life of 5 years from the date of sale. In the December 31, 2019 consolidated balance sheet, how much is the consolidated net income attributable to the parent company?
On July 1, 2019, Joltik Company purchased 80% of the outstanding shares of Galvantula Company at a cost of P4,000,000. On that date, Galvantula had P2,500,000 of capital stock and P3,500,000 of
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