On January 1, 20x1, PATRIMONY Co. entered into a joint arrangement classified as a joint venture. For an investment of ₱2,000,000, PATRIMONY Co. obtained 30% interest in HERITAGE Joint Venture, Inc. During the year, HERITAGE Joint Venture, Inc. reported profit of ₱4,000,000 and other comprehensive income of ₱800,000, i.e., a total comprehensive income of ₱4,800,000. HERITAGE Joint Venture, Inc. declared dividends of ₱2,400,000. How much is the carrying amount of the investment in joint venture on December 31, 20x1?
On January 1, 20x1, PATRIMONY Co. entered into a joint arrangement classified as a joint venture. For an investment of ₱2,000,000, PATRIMONY Co. obtained 30% interest in HERITAGE Joint Venture, Inc. During the year, HERITAGE Joint Venture, Inc. reported profit of ₱4,000,000 and other comprehensive income of ₱800,000, i.e., a total comprehensive income of ₱4,800,000. HERITAGE Joint Venture, Inc. declared dividends of ₱2,400,000. How much is the carrying amount of the investment in joint venture on December 31, 20x1?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 20x1, PATRIMONY Co. entered into a joint arrangement classified as a joint venture. For an investment of ₱2,000,000, PATRIMONY Co. obtained 30% interest in HERITAGE Joint Venture, Inc. During the year, HERITAGE Joint Venture, Inc. reported profit of ₱4,000,000 and other comprehensive income of ₱800,000, i.e., a total comprehensive income of ₱4,800,000. HERITAGE Joint Venture, Inc. declared dividends of ₱2,400,000. How much is the carrying amount of the investment in joint venture on December 31, 20x1?
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