On January 1, 2019, Entity A acquired 80% of outstanding ordinary shares of Entity B at a gain

on bargain purchase of P180,000. The following intercompany transactions occurred for between
the two entities:

 On January 1, 2019, Entity B sold a land to Entity A with a cost of P1,000,000 at a selling
price of P1,100,000. The land was eventually sold by Entity A to third persons during 2020.

 On January 1, 2019, Entity A sold a white machinery to Entity B with a cost of P200,000 and
accumulated depreciation of P40,000 at a selling price of P180,000. The machinery is already
4 years old at the date of sale. The residual value of white machinery is immaterial.

 On July 1, 2020, Entity B sold a black machinery to Entity A at with a cost of P270,000 and
accumulated depreciation of P180,000 at a selling price of P60,000. The machinery is already
6 years old at the date of sale. The residual value of black machinery is immaterial.

For the year ended December 31, 2020, Entity A reported net income of P800,000 while Entity B
reported net income of P500,000 and distributed dividends of P150,000. Entity A accounted for
its inventory in Entity B using cost method in its separate financial statements.

What is the consolidated depreciation expense of machinery for 2020?

A. 40,000
B. 55,000
C. 61,667
D. 42,333

What is the noncontrolling interest in net income for 2020?

 124,000
 105,000
 125,000
 104,000

What is the consolidated net income attributable to parent shareholders for 2020?
 1,538,750
 1,518,750
 1,398,750
 1,418,750