n January 2, 2020. Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for P20.000.000. Tuao is the largest single shareholder in Abulug and this gives Tuao the power to participate in the financial and operating policy decisions of the Abulug but is not control or joint control over those policies. Abulug reported profit of P10,000,000 and paid dividend of P4,000,000. What should be the balance in Tuao's investment in Abulug Company at the end of 2020? A. 21,000,000 B. 20,000,000 C. 21,400,000 D. 20,600,000

n January 2, 2020. Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for P20.000.000. Tuao is the largest single shareholder in Abulug and this gives Tuao the power to participate in the financial and operating policy decisions of the Abulug but is not control or joint control over those policies. Abulug reported profit of P10,000,000 and paid dividend of P4,000,000. What should be the balance in Tuao's investment in Abulug Company at the end of 2020? A. 21,000,000 B. 20,000,000 C. 21,400,000 D. 20,600,000

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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Kk139.
Andrew Company purchased 800 ordinary shares of Valley Industries as a trading investment for P148,800. During the year, Valley Industries paid a cash dividend of P32 per share. At year-end, Valley’s shares were selling for P174 per share. In the income statement for the current year-end, what net amount of unrealized gain/loss and dividend revenue should be reported by Andrew Company?
On January 1, 20x1, AAA Co. acquired 30% ownership interest in BBB, Inc. for ₱200,000. Because the investment gave AAA significant influence over BBB, the investment was accounted for under the equity method in accordance with PAS 28.From 20x1 to the end of 20x3, AAA recognized ₱100,000 net share in the profits of the associate and ₱20,000 share in dividends. Therefore, the carrying amount of the investment in associate account on January 1, 20x3, is ₱280,000.On January 1, 20x4, AAA acquired additional 60% ownership interest BBB, Inc. for ₱1,600,000. As of this date, AAA has identified the following:a. The previously held 30% interest has a fair value of ₱360,000.b. BBB’s net identifiable assets have a fair value of ₱2,000,000.c. AAA elected to measure non-controlling interests at the non-controlling interest’s proportionate share of BBB’s identifiable net assets.Requirement: Compute for the goodwill.
Ashong Plc has two subsidiaries, Yvonne Plc and Wett Plc. It purchased 10,000 shares in Yvonne Plc on 1 January 2015 for GH¢35,000 when the retained earnings of Yvonne Plc stood at GH¢21,000. It purchased 15,000 shares in Wett Plc for GH¢30,000 on 31 December 2015 when the retained earnings of Wett Plc stood at GH¢16,000. The issued share capital (all issued at GHC 1 each ) of the two subsidiaries is as follows:2Yvonne Plc GH¢15,000Wett Plc GH¢20,000By the end of 2018, goodwill impairment losses totaled GH¢4,000.What is the carrying amount of goodwill in the consolidated statement of financial position at 31 December 2018 ?
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3. On January 1, 2018, Hina Company acquired as a long-term investment a 20% ordinary share interest in Shivani Company. Hina paid P7, 000,000 for this investment when the fair value of Shivani’s net assets was P35, 000,000. Hina can exercise significant influence over Shivani’s operating and financial policies. For the year ended December 31, 2018, Shivani reported net income of P4,000,000 and declared and paid cash dividends of P1,600,000. How much revenue from the investment should Hina report for 2018? 4. On July 1, 2018, Melanie Company purchased 30,000 shares of Eagle Company’s 100,000 outstanding ordinary shares for P200 per share. On December 15, 2018, Eagle paid P400,000 in dividends to its ordinary shareholders. Eagle’s net income for the year ended December 31, 2018 was P1,200,000, earned evenly throughout the year. In its 2018 income statement, what amount of income from the investment should Denver report? 5. Savannah Company bought 40% of Diarra Company’s…
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