On January 1, 2011, ABC Co. purchased 20,000 shares of the 100,000 total outstanding shares of P Inc for P4,000 000. P’s assets and liabilities approximate their fair values. In 2011 , P Inc. reported profit of P12,000,000 and declared and paid cash dividends of P800,000. In 2012, P reported loss of P8,000,000, declared and issued 10% stock dividends, and reported gain on property revaluation of P2,000,000 and loss on exchange differences on translation of foreign operations of P400,000. How much is the share in profit or loss of the associate in 2011? 2,240,000 2,400,000 160,000 0 How much is the carrying amount of the investment as of December 31, 2011? 4,000,000 6,240,000 6,400,000 6,560,000 How much is the investment income (loss on investment) to be recognized in profit or loss in 2012? (1,280,000) 400,000 (1,600,000) 320,000
On January 1, 2011, ABC Co. purchased 20,000 shares of the 100,000 total outstanding shares of P Inc for P4,000 000.
P’s assets and liabilities approximate their fair values. In 2011 , P Inc. reported profit of P12,000,000 and declared and paid cash dividends of P800,000.
In 2012, P reported loss of P8,000,000, declared and issued 10% stock dividends, and reported gain on property revaluation of P2,000,000 and loss on exchange differences on translation of foreign operations of P400,000.
How much is the share in profit or loss of the associate in 2011?
2,240,000
2,400,000
160,000
0
How much is the carrying amount of the investment as of December 31, 2011?
4,000,000
6,240,000
6,400,000
6,560,000
How much is the investment income (loss on investment) to be recognized in profit or loss in 2012?
(1,280,000)
400,000
(1,600,000)
320,000
How much is the net share in the other comprehensive income of the associate in 20x2?
320,000
(1,280,000)
1,280,000
0
How much is the carrying amount of the investment as of December 31, 20x2?
4,960,000
4,640,000
4,000,000
0
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