Pete Corporation purchases 80% of the common stock of Sake Company on January 2, 2017 for P300,000.

Assume that all the assets and liabilities

of Sake Company have fair market values equal to their book values, except the following:

Carrying amount Fair Value

Inventory 60,000 65,000
Property, Plant & Equipment 300,000 360,000
Totals 60,000 76,000

All the inventory on January 2, 2017 was sold. The Property, Plant & Equipment have a remaining useful life of 10 years from the date of acquisition,
and a straight-line depreciation method is used.

For the year immediately after the acquisition, Sake Company reported the following:

Comprehensive Income P50,000

Dividends paid 30,000
Financial Statements of Pete and Sake for 2017:

Pete Corporation and Subsidiary

Working Paper Consolidated Financial Statements
Year Ended December 31, 2017

Pete Corp. Sake Corp.

Statement of CI
Sales 400,000 200,000
Dividend Income 24,000
Total revenue 424,000 200,000
Cost of Goods Sold 170,000 115,000
Operating Expenses 50,000 20,000
Other Expenses 40,000 15,000
Total Costs and Expenses 260,000 150,000
Net/consolidated CI 164,000 50,000
NCI CI of Sake Co.
CI to RE 164,000 50,000

Statement of Retained Earnings

Retained Earnings, January 1
Pete Corporation 300,000
Sake Corporation 100,000
CI from above 164,000 50,000
Total 464,000 150,000
Dividends Declared
Pete Corporation 60,000
Sake Corporation 30,000
Retained Earnings, December 31 (SFP) 404,000 120,000

Statement of Financial Position

Cash 204,000 75,000
Accounts Receivable 75,000 50,000
Inventory 100,000 75,000
Property and Equipment(net) 525,000 320,000
Investment in Sake Company 300,000

Goodwill
Total Assets 1,204,000 520,000
Accounts payable 100,000 100,000
Bonds payable 200,000 100,000
Common Stock:
Pete Corporation 500,000
Sake Corporation 200,000
Retained Earnings 404,000 120,000
NCI
Total Liabilities and Equity 1,204,000 520,000

Requirements:

How much is the Conso Income attributable Parent? How much is the Conso Income attributable to NCI(NCINIS)?

Prepare Working Paper Elimination Entries

Prepare Consolidated Financial Statements

Pete Corporation and Subsidiary
Working Paper Consolidated Financial
Statements
Year Ended December 31, 2017
Working Paper Elimination Entries
Pete Sake
Corp. Corp. Debit Credit Consolidated FS
Statement of CI
Sales 400,000 200,000 600,000
Dividend Income 24,000 (4)24,000
Total revenue 424,000 200,000 600,000
Cost of Goods Sold 170,000 115,000 (5)5,000 2,900,000
Operating Expenses 50,000 20,000 (5)6,000 76,800
Other Expenses 40,000 15,000 55,000
Total Costs and Expenses 260,000 150,000 421,000
Net/consolidated CI 164,000 50,000
NCI CI of Sake Co. (6)7,800 (7,800 )
CI to RE 164,000 50,000 171,200

Statement of Retained Earnings

Retained Earnings, January 1
Pete Corporation 300,000 300,000
Sake Corporation 100,000 (1) 100,000
CI from above 164,000 50,000 171,200
Total 464,000 150,000 471,200
Dividends Declared
Pete Corporation 60,000 (60,000)
Sake Corporation 30,000 (4)30,000
Retained Earnings, December 31 to SFP 404,000 120,000 411,200

Statement of Financial Position

Cash 204,000 75,000 279,000
Accounts Receivable 75,000 50,000 125,000
Inventory 100,000 75,000 (2) 5,000 (5)5,000 175,000
Property and Equipment(net) 525,000 320,000 (2) 60,000 (5)6,000 899,000
(1)240,000;
Investment in Sake Company 300,000 (2)52,000;(3)8,000

Goodwill (3)10,000 10,000

Total Assets 1,204,000 520,000 1,488,000
Accounts payable 100,000 100,000 200,000
Bonds payable 200,000 100,000 300,000
Common Stock:
Pete Corporation 500,000 500,000
Sake Corporation 200,000 (1) 200,000
Retained Earnings 404,000 120,000 411,200
(1)60,000;
(2)13,000;(3)2,000;
NCI (4)6,000 (6) 7,800 76,800
Total Liabilities and Equity 1,204,000 520,000 423,800 423,800 1,488,000