48 carrying amount of P1,300,000 on January 1, 20x1, under the equity method. On September 1, 20x1, Art sells 75% of the investment at P140 per share- the fair value on this date. Ari incurs transaction costs of P120,000 on the sale. Ritz reports profit of P4,200,000 for the year and declares cash dividends of P1,200,000 on December 31, 20xl. The profit is earned evenly during the year. Ritz's shares are selling at P130 December 31, 20x1. How much is the net effect of the investment in Art Co.'s profit or loss in 20x1? a. 2,092,500 On Da ac 10 per share on b. 2,289,500. c. 2,356,500 d. 2,420,500

48 carrying amount of P1,300,000 on January 1, 20x1, under the equity method. On September 1, 20x1, Art sells 75% of the investment at P140 per share- the fair value on this date. Ari incurs transaction costs of P120,000 on the sale. Ritz reports profit of P4,200,000 for the year and declares cash dividends of P1,200,000 on December 31, 20xl. The profit is earned evenly during the year. Ritz's shares are selling at P130 December 31, 20x1. How much is the net effect of the investment in Art Co.'s profit or loss in 20x1? a. 2,092,500 On Da ac 10 per share on b. 2,289,500. c. 2,356,500 d. 2,420,500

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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