INTERCOMPANY SALE OF FIXED ASSETS_2

During 2014 HULI Company sold Land with a cost of P150, 000 to its 80% owned subsidiary, NATO
Company, for P200, 000. The subsidiary sold the land in 2016 to an outsider for P280, 000. The
subsidiary and the parent reported net income as follows:
Parent Subsidiary
2014 P351, 000 P154, 000
2015 P335, 000 P149, 000
2016 P315, 000 P165, 000
The reported income of the parent includes P51, 00 of dividend income each year.

Compute for the investment income of HULI Co. from NATO Co. each year and consolidated net income,
controlling interest in net income, and minority interest in net income each year.

On January 1, 2014, DEPART Company a 90% owned subsidiary of MENTAL Company transferred
equipment to its parent in exchange for P75, 000 cash. At the date of transfer, the subsidiary’s record
carried the equipment at a cost of P106, 000 less accumulated depreciation of P45, 000. The equipment
has an estimated remaining life of 7 years. The subsidiary reported net income for 2014 and 2015 of
P132, 000 and P197, 000 respectively. The parent company reported income of P220, 000 (including
dividend income of P45, 000) and P295, 000(including dividend income of P45, 000) for 2014 and 2015,
respectively.

Compute for the investment income of HULI Co. from NATO Co. each year and consolidated net income,
controlling interest in net income, and minority interest in net income each year.