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. How much is the net share in the profit or loss of the associate (investment income) in 2021? P480,000 P825,000 P420,000 P135,000

. How much is the net share in the profit or loss of the associate (investment income) in 2021? P480,000 P825,000 P420,000 P135,000

FINANCIAL ACCOUNTING
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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1. How much is the net share in the profit or loss of the associate (investment income) in 2021?

P480,000
P825,000
P420,000
P135,000
 
2. How much is the carrying amount of the investment as of December 31, 2021?
P7,815,000
P8,025,000
P7,680,000
P7,125,000
On January 1, 2019, CCC Co. acquired 15,000 ordinary shares out of the 100,000 outstanding ordinary shares of WBA Inc. for P3,150,000. The investment was classified as fair value through profit or loss (FVTPL). The fair values per share of WBA are as follows: December 31, 2019, P260 December 31, 2020, P240 December 31, 2021, P280 On January 1, 2021, CCC purchased an additional 15,000 of WBA's stock representing 15% additional interest for P3,600,000 when the carrying amount of WBA's net assets was P12,500,000. The excess was attributable to the machinery having a remaining life of ten years. On December 31, 2019, WBA reported net income of P1,200,000 and declared and paid dividends of P500,000. On December 31, 2020, WBA reported net income of P1,400,000 and declared and paid dividends of P550,000. On December 31, 2021, WBA reported net income of P1,600,000 and declared and paid dividends of P700,000.
Transcribed Image Text:On January 1, 2019, CCC Co. acquired 15,000 ordinary shares out of the 100,000 outstanding ordinary shares of WBA Inc. for P3,150,000. The investment was classified as fair value through profit or loss (FVTPL). The fair values per share of WBA are as follows: December 31, 2019, P260 December 31, 2020, P240 December 31, 2021, P280 On January 1, 2021, CCC purchased an additional 15,000 of WBA's stock representing 15% additional interest for P3,600,000 when the carrying amount of WBA's net assets was P12,500,000. The excess was attributable to the machinery having a remaining life of ten years. On December 31, 2019, WBA reported net income of P1,200,000 and declared and paid dividends of P500,000. On December 31, 2020, WBA reported net income of P1,400,000 and declared and paid dividends of P550,000. On December 31, 2021, WBA reported net income of P1,600,000 and declared and paid dividends of P700,000.
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