Parent Company’s shareholders’ equity as of December 31, 2019 is P2,030,000. On January 1, 2020, Parent acquires 25% of Subsidiary Company’s ordinary share for P150,000 cash and by issuing its own shares with fair value of P200,000. Parent acquired significant influence over Subsidiary as a result of acquisition. After three months, Parent purchases another 55% of Subsidiary’s ordinary share for cash payment of P1,100,000. On this date, Subsidiary reports identifiable assets with carrying value of P1,800,000 and fair value of P3,200,000 and it has liabilities with a book value and fair value of P900,000. At the acquisition date, net income reported by Subsidiary for three-month ended amounted to P500,000. The fair value of 20% NCI is P360,000. NCI is valued using the proportionate basis. Parent also paid the following: P25,000 for broker’s fee; P20,000 for pre-acquisition audit fee; P21,500 for legal fees; P18,000 for SEC registration of share issued and P5,500 for printing of share certificates. Immediately after the business combinations, what is the consolidated total equity of Parent Company?
Parent Company’s shareholders’ equity as of December 31, 2019 is P2,030,000. On January 1, 2020, Parent acquires 25% of Subsidiary Company’s ordinary share for P150,000 cash and by issuing its own shares with fair value of P200,000. Parent acquired significant influence over Subsidiary as a result of acquisition. After three months, Parent purchases another 55% of Subsidiary’s ordinary share for cash payment of P1,100,000. On this date, Subsidiary reports identifiable assets with carrying value of P1,800,000 and fair value of P3,200,000 and it has liabilities with a book value and fair value of P900,000. At the acquisition date, net income reported by Subsidiary for three-month ended amounted to P500,000. The fair value of 20% NCI is P360,000. NCI is valued using the proportionate basis. Parent also paid the following: P25,000 for broker’s fee; P20,000 for pre-acquisition audit fee; P21,500 for legal fees; P18,000 for SEC registration of share issued and P5,500 for printing of share certificates. Immediately after the business combinations, what is the consolidated total equity of Parent Company?
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