4. Entity A acquired 20% interest in Entity B on March 31, 20 for P500,000. Entity B reports profit of P1M in 20x1, which was earned evenly throughout the period, and declares dividends
4. Entity A acquired 20% interest in Entity B on March 31, 20 for P500,000. Entity B reports profit of P1M in 20x1, which was earned evenly throughout the period, and declares dividends
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 1BCRQ
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Transcribed Image Text:4. Entity A acquired 20% interest in Entity B on March 31, 2011
for P500,000. Entity B reports profit of P1M in 20x1, which was
earned evenly throughout the period, and declares dividends
Transcribed Image Text:of P300,000 at year-end. In 20x2, Entity B reports loss of
P200,000 and declares no dividends. What is the carrying
amount of the investment in associate on December 31, 20x2?
C. 600,000
d. 640,000
a. 550,000
b. 590,000
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