The Harvard Company acquired a 30% equity Interest in Baywatch Company for P4,000,000 on January 1, 2019. In the year 2019, Baywatch earned profits of P800,000 and paid no dividends. In the year 2020, Baywatch incurred losses of P320,000 and paid P100,000 dividends. In Harvard's consolidated statement of financial position at December 31, 2020, what should be the carrying amount of interest in Baywatch? a. P4,000,000 b. P4,114,000 c. P4,144,000 d. P4,380,000
The Harvard Company acquired a 30% equity Interest in Baywatch Company for P4,000,000 on January 1, 2019. In the year 2019, Baywatch earned profits of P800,000 and paid no dividends. In the year 2020, Baywatch incurred losses of P320,000 and paid P100,000 dividends. In Harvard's consolidated statement of financial position at December 31, 2020, what should be the carrying amount of interest in Baywatch? a. P4,000,000 b. P4,114,000 c. P4,144,000 d. P4,380,000
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 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
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The Harvard Company acquired a 30% equity Interest in Baywatch Company for P4,000,000 on January 1, 2019. In the year 2019, Baywatch earned profits of P800,000 and paid no dividends. In the year 2020, Baywatch incurred losses of P320,000 and paid P100,000 dividends.
In Harvard's consolidatedstatement of financial position at December 31, 2020, what should be the carrying amount of interest in Baywatch?
In Harvard's consolidated
a. P4,000,000
b. P4,114,000
c. P4,144,000
d. P4,380,000
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