Chevy Company owns 50% of another entity’s preference share capital and 40% of its ordinary share capital. The investee’s share capital outstanding at December 31, 2021 include P5,000,000 of 10% cumulative preference share capital and P10,000,000 of ordinary share capital. The investee reported net income of P6,000,000 for 2021. No dividend was declared for both preference and ordinary share in 2021. 5. What amount should Chevy Company report as investment income for 2021
Chevy Company owns 50% of another entity’s preference share capital and 40% of its ordinary share capital. The investee’s share capital outstanding at December 31, 2021 include P5,000,000 of 10% cumulative preference share capital and P10,000,000 of ordinary share capital. The investee reported net income of P6,000,000 for 2021. No dividend was declared for both preference and ordinary share in 2021. 5. What amount should Chevy Company report as investment income for 2021
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 23E
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Chevy Company owns 50% of another entity’s
capital. The investee’s share capital outstanding at December 31, 2021 include P5,000,000 of 10%
cumulative preference share capital and P10,000,000 of ordinary share capital. The investee reported
net income of P6,000,000 for 2021. No dividend was declared for both preference and ordinary share
in 2021.
5. What amount should Chevy Company report as investment income for 2021
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