On June 13, 2021, Rainy Co. paid P500,000 for 20,000 shares of Niel's ordinary shares and classified these shares as held for trading securities. Rainy does not have the ability to exercise significant influence over Niel. Niel declared and paid a dividend of P0.50 a share to its shareholders in 2021. Rainy reported a net income of P260,000 for the year ended December 31, 2021. The fair value of Niel Co.'s stock on December 31, 2021, is P27 per share. What is the net asset amount attributable to the investment in Niel that will be included on Rainy's balance sheet on December 31, 2021?

On June 13, 2021, Rainy Co. paid P500,000 for 20,000 shares of Niel's ordinary shares and classified these shares as held for trading securities. Rainy does not have the ability to exercise significant influence over Niel. Niel declared and paid a dividend of P0.50 a share to its shareholders in 2021. Rainy reported a net income of P260,000 for the year ended December 31, 2021. The fair value of Niel Co.'s stock on December 31, 2021, is P27 per share. What is the net asset amount attributable to the investment in Niel that will be included on Rainy's balance sheet on December 31, 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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