BP (SME A) and BTS (SME B) each acquired 30% of the outstanding shares of Big Hit Corporation for P202.000, including the transaction cost of P2.000. BP and BTS agreed to a joint control over Big Hit. During the year. Big Hit reported the following: . Profit for the year - P20,000 • Dividends declared - P4.000 It was determined after a thorough test that due to economic changes, there was an adverse effect to Big Hit during the year. Hence, there appears to be impairment of the investment in the said entity. Assuming that BP elected to carry the 1 point investment in Big Hit using the Cost Method and the Fair Value of Big Hit at year end P196,000 and cost to sell amounts to P1,800, How much is the impairment loss to be recognized by BP in its investment in Bighit? A. 0 B. 2,000 C. 7,800 D. 5,800   Assuming that BP elected to use the Fair Value method and the fair value of Bighit at yearend is P196,000 and cost to sell amounts to P1,800. How much is the net profit/loss from the investment? A. 1,200 B. (1,800) C. 4,000 D. (4,800)   Assuming that BP elected to use the Fair Value method and the fair value of BigHit at yearend is P196,000 and cost to sell amounts to P1,800. How much is the impairment loss to be recognized for the year?   A. 0 B. 2,000 C. 7,800 D. 12,600

26. On January 1, B company paid $2,295,000 to acquire 90,000 shares of O company's voting common stock, which represents a 30 percent investment. No allocations to   goodwill or other specific accounts were made. Significant influence over O company is achieved by this acquisition, and so B company applies the equity method. O company   declared a $1 per share dividend during the year and reported net income of $750,000. What is the balance in the Investment in O company account found in B company's   financial records as of December 31?

As a long-term investment at the beginning of the fiscal year, Florists International purchased 40% of Nursery Supplies Inc.'s 6 million shares for $50 million. The fair value and book value of the shares were the same at that time. The company realizes that this investment typically would be accounted for under the equity method, but instead chooses the fair value option. During the year, Nursery Supplies earned net income of $30 million and distributed cash dividends of $1.25 per share. At the end of the year, the fair value of the shares is $46 million. Required: 1. How would this investment be classified on Florists balance sheet? Trading securities Held-to-maturity security Significant-influence investment Other securities 2. Prepare all appropriate journal entries related to the investment during 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered…

Required information Skip to question   [The following information applies to the questions displayed below.] As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 400,000 shares for $480,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $250,000 and distributed cash dividends of 25 cents per share. At year-end, the fair value of the shares is $505,000.   Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.