1. What is the gain on remeasurement to equity to be recognized for 2021?a. 1,500,000b. 4,500,000c. 2,250,000d. 02. What is the goodwill arising from the acquisition on January 1, 2021?a. 2,250,000b. 1,250,000c. 1,350,000d. 350,0003. What is the carrying amount of the investment in associate on December 31, 2021?a. 11,250,000b. 11,800,000c. 12,000,000d. 14,300,000 On January 1, 2020, Forensic Company acquired a 10%interest in an investee for P3,000,000. The investment wasaccounted for using, the çast. method.On January 1, 2021, the entity acquired a further 15% interestinvestee was P36,000,000 and the fair value of the 10%Problem 18-8 (IFRS)on January 1, 2021, the antity acquired a further 15% interestin the investee for P6,750,000.On such date, the carrying amount of the net assets of theinterest was P4,500,000.The fair value of the net assets. of the investee is equal tocarrying amount except for an equipment whose fair valueexceeds carrying amount by P4,000,000. The equipment hasa remaining life of-5 years.The investee reported net income of P8,000,000 for 2021 andpaid dividend of P5,000,000 on December 31, 2021.1. What is the gain on remeasurement to equity to berecognized for 2021?a. 1,500,000b. 4,500,000c. 2,250,000d.2. What is the goodwill arising from the acquisition onJanuary 1, 2021?a. 2,250,000b. 1,250,000c. 1,350,000d.350,000* What is the carrying amount of the investment inassociate on December 31, 2021?a. 11,250,000b. 11,800,000c. 12,000,000d. 14,300,000

Therefore, option (a) is the correct answer.

. What is the gain on remeasurement to equity to be recognized for 2021? a. 1,500,000 b. 4,500,000 c. 2,250,000 d. 0 2. What is the goodwill arising from the acquisition on January 1, 2021? a. 2,250,000 b. 1,250,000 c. 1,350,000 d. 350,000 3. What is the carrying amount of the investment in associate on December 31, 2021? a. 11,250,000 b. 11,800,000 c. 12,000,000 d. 14,300,000

. What is the gain on remeasurement to equity to be recognized for 2021? a. 1,500,000 b. 4,500,000 c. 2,250,000 d. 0 2. What is the goodwill arising from the acquisition on January 1, 2021? a. 2,250,000 b. 1,250,000 c. 1,350,000 d. 350,000 3. What is the carrying amount of the investment in associate on December 31, 2021? a. 11,250,000 b. 11,800,000 c. 12,000,000 d. 14,300,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8MC

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