On January 1 2021,ABC acquires 100% interest in CDE in exchange for ABC’s 10,000 shares with par value per share of P20 and fair value per share of P200. CDE’s net identifiable assets have fair value of P1,920,000 and a book value of P1,850,000. In addition, ABC agrees to provide an additional payment of P400,000 if CDE’s 2021 net income will except P3,600,000. The fair value of the contingent consideration is P280,000. The net identifiable asset of ABC have a book value of P3,250,000 and the fair value of P3,375,000. Compute for the consolidated net identifiable asset after the acquisition.

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.