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Choose the correct answer: Westlife Company acquired on July 1, 2020, 30,000 ordinary shares of Lucy Company for P40 per share.   Lucy has 100,000 outstanding ordinary shares on that date.   Lucy’s net income for the year ended December 31, 2020 was P2,400,000, earned evenly throughout the year.    Lucy paid dividends in the amount of P800,000 to its ordinary shareholders at December 31, 2020.             What  amount of income from the investment should Westlife report in its 2020 income statement? Remember the shares were acquired July 1 so right over the associate starts only from July 1. P720,000                                c.         P240,000 P360,000                                d.         P120,000

Choose the correct answer: Westlife Company acquired on July 1, 2020, 30,000 ordinary shares of Lucy Company for P40 per share.   Lucy has 100,000 outstanding ordinary shares on that date.   Lucy’s net income for the year ended December 31, 2020 was P2,400,000, earned evenly throughout the year.    Lucy paid dividends in the amount of P800,000 to its ordinary shareholders at December 31, 2020.             What  amount of income from the investment should Westlife report in its 2020 income statement? Remember the shares were acquired July 1 so right over the associate starts only from July 1. P720,000                                c.         P240,000 P360,000                                d.         P120,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Choose the correct answer:

Westlife Company acquired on July 1, 2020, 30,000 ordinary shares of Lucy Company for P40 per share.   Lucy has 100,000 outstanding ordinary shares on that date.   Lucy’s net income for the year ended December 31, 2020 was P2,400,000, earned evenly throughout the year.    Lucy paid dividends in the amount of P800,000 to its ordinary shareholders at December 31, 2020.

            What  amount of income from the investment should Westlife report in its 2020 income statement? Remember the shares were acquired July 1 so right over the associate starts only from July 1.

  1. P720,000                                c.         P240,000
  2. P360,000                                d.         P120,000
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