FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Strickland Industries purchased a 30% interest in Spartan, Inc. for P600,000. Spartan, Inc. has 100,000 P10 par value ordinary shares outstanding. This investment enables Strickland to exert significant influence over Spartan. During the year, Spartan earned net income of P360,000 and paid dividends of P120,000; Strickland earned net income of P48,000 and paid dividends of P160,000. At the end of the year, the shares of Spartan were trading on an organized exchange for P22 per share. On Strickland’s year-end statement of financial position, its investment in Spartan, Inc. will be valued at

P600,000
P660,000
P672,000
P696,000

 

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