A Co. acquired 60% of the outstanding shares of B Co. on January 2, 2021. A Co. acquired it at book value which is the same as its fair value at the date of acquisition. Income Statement of A Co. and B Co. for 2022 are as follows:
A Co. B Co.
Net Sales P1,093,750 P437,500
Cost of Sales 656,250 262,500
Gross Profit 437,500 175,000
Operating Expenses 131,250 65,625
Operating Income 306,250 109,375
Dividend Income 70,000 0
Net Income P 376,250 P109,375
B Co. made sales to A Co. of P140,000 in 2021 and P210,000 in 2022. A Co. reported inventory on December 31, 2021 amounting to P87,500 of which 20% comes from B Co. and inventory on December 31, 2022 amounting to P105,000 of which 30% comes from B Co.
A Co. uses 30% mark-up on cost and B Co. uses 25% mark-up on cost for their selling prices. A Co. and B Co. declared and paid dividends in 2022 amounting to P105,000 and P87,500, respectively.
Required:
For 2022, how much is the non-controlling interest in net income of subsidiary?