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On April 30, 2021, Marie Company purchased for cash 18,000 of the 60,000 voting shares of Robbie Company P650,000. The amount exceeded the underlying equity acquired in the net assets of Robbie Company by P150,000 The excess is attributable to undervaluation of Robbie Company's land and equipment by P250,000 and P100,000 respectively. At April 30. 2021, the equipment had a remaining useful life of 5 years. The remaining excess w attributable to goodwill. During the year 2021, Robbie Company reported profit of P600,000, of which P120,000 was earned during Januar through April. Robbie Company declared and distributed a dividend of P4.00 per share on June 30, 2021. Market pric of Robbie Company shares at December 31, 2021 is P40 per share.

On April 30, 2021, Marie Company purchased for cash 18,000 of the 60,000 voting shares of Robbie Company P650,000. The amount exceeded the underlying equity acquired in the net assets of Robbie Company by P150,000 The excess is attributable to undervaluation of Robbie Company's land and equipment by P250,000 and P100,000 respectively. At April 30. 2021, the equipment had a remaining useful life of 5 years. The remaining excess w attributable to goodwill. During the year 2021, Robbie Company reported profit of P600,000, of which P120,000 was earned during Januar through April. Robbie Company declared and distributed a dividend of P4.00 per share on June 30, 2021. Market pric of Robbie Company shares at December 31, 2021 is P40 per share.

Intermediate Accounting: Reporting And Analysis
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
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
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43.  What is the carrying amount of the investment in associates at December 31, 2021?

A. P708,500
B. P716,000
C. P718,000
D. P720,000
U. On April 30, 2021, Marie Company purchased for cash 18,000 of the 60,000 voting shares of Robbie Company for P650,000. The amount exceeded the underlying equity acquired in the net assets of Robbie Company by P150,000. The excess is attributable to undervaluation of Robbie Company's land and equipment by P250,000 and P100,000, respectively. At April 30. 2021, the equipment had a remaining useful life of 5 years. The remaining excess was attributable to goodwill. During the year 2021, Robbie Company reported profit of P600,000, of which P120,000 was earned during January through April. Robbie Company declared and distributed a dividend of P4.00 per share on June 30, 2021. Market price of Robbie Company shares at December 31, 2021 is P40 per share.
Transcribed Image Text:U. On April 30, 2021, Marie Company purchased for cash 18,000 of the 60,000 voting shares of Robbie Company for P650,000. The amount exceeded the underlying equity acquired in the net assets of Robbie Company by P150,000. The excess is attributable to undervaluation of Robbie Company's land and equipment by P250,000 and P100,000, respectively. At April 30. 2021, the equipment had a remaining useful life of 5 years. The remaining excess was attributable to goodwill. During the year 2021, Robbie Company reported profit of P600,000, of which P120,000 was earned during January through April. Robbie Company declared and distributed a dividend of P4.00 per share on June 30, 2021. Market price of Robbie Company shares at December 31, 2021 is P40 per share.
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