n January 1, 2022, Entity A, a small-medium enterprise, invested P400,000 for a 30% interest in a joint venture. Assume the INDEPENDENT CASES: For the year ended December 31, 2022, the joint venture reported a net loss of P100,000. The fair value of the investment was P390,000 and the cost to sell was P25,000. There was a public price quotation for the joint venture. Entity A opted to use the equity model. What is the balance of the Investment in Joint Venture account to be reported at December 31, 2022?
n January 1, 2022, Entity A, a small-medium enterprise, invested P400,000 for a 30% interest in a joint venture. Assume the INDEPENDENT CASES: For the year ended December 31, 2022, the joint venture reported a net loss of P100,000. The fair value of the investment was P390,000 and the cost to sell was P25,000. There was a public price quotation for the joint venture. Entity A opted to use the equity model. What is the balance of the Investment in Joint Venture account to be reported at December 31, 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2022, Entity A, a small-medium enterprise, invested P400,000 for a 30% interest in a joint venture.
Assume the INDEPENDENT CASES:
For the year ended December 31, 2022, the joint venture reported a net loss of P100,000. The fair value of the investment was P390,000 and the cost to sell was P25,000. There was a public price quotation for the joint venture.
Entity A opted to use the equity model. What is the balance of the Investment in Joint Venture account to be reported at December 31, 2022?
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