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Montana Company engaged in the following investment transactions during the current year. February 1 Purchased 5,000 ordinary shares of Medical Company for P200 per share plus a brokerage commission of P50,000 April 1 June 25 June 30 Bought 30,000 of the 100,000 outstanding shares of Olde Company for P3,000,000. Goodwill of P800,000 was included in the price. Received P120 per share dividend on Medical Company shares. Olde Company reported second quarter net income of P1,500,000 Purchased 20,000 shares of Alpha Company for P150 per share plus brokerage fee of P100,000. These shares are designated at FVOCI. Received P50 per share dividend on Alpha Company shares. Oct. 1 Dec. 31 31 Medical Company shares are selling for P250 and Alpha shares are selling for P180. 31 Olde Company reported net income of P4,000,000 for the last two quarters of the year and paid cash dividend of P1,500,000.

Montana Company engaged in the following investment transactions during the current year. February 1 Purchased 5,000 ordinary shares of Medical Company for P200 per share plus a brokerage commission of P50,000 April 1 June 25 June 30 Bought 30,000 of the 100,000 outstanding shares of Olde Company for P3,000,000. Goodwill of P800,000 was included in the price. Received P120 per share dividend on Medical Company shares. Olde Company reported second quarter net income of P1,500,000 Purchased 20,000 shares of Alpha Company for P150 per share plus brokerage fee of P100,000. These shares are designated at FVOCI. Received P50 per share dividend on Alpha Company shares. Oct. 1 Dec. 31 31 Medical Company shares are selling for P250 and Alpha shares are selling for P180. 31 Olde Company reported net income of P4,000,000 for the last two quarters of the year and paid cash dividend of P1,500,000.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 6MCQ: Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were...
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What amount of dividend income should be reported for the current year?

What total amount of income should be reported in the current year's profit or loss?

Montana Company engaged in the following investment transactions during the current year. February 1 Purchased 5,000 ordinary shares of Medical Company for P200 per share plus a brokerage commission of P50,000 April 1 June 25 June 30 Bought 30,000 of the 100,000 outstanding shares of Olde Company for P3,000,000. Goodwill of P800,000 was included in the price. Received P120 per share dividend on Medical Company shares. Olde Company reported second quarter net income of P1,500,000 Purchased 20,000 shares of Alpha Company for P150 per share plus brokerage fee of P100,000. These shares are designated at FVOCI. Received P50 per share dividend on Alpha Company shares. Oct. 1 Dec. 31 31 Medical Company shares are selling for P250 and Alpha shares are selling for P180. 31 Olde Company reported net income of P4,000,000 for the last two quarters of the year and paid cash dividend of P1,500,000.
Transcribed Image Text:Montana Company engaged in the following investment transactions during the current year. February 1 Purchased 5,000 ordinary shares of Medical Company for P200 per share plus a brokerage commission of P50,000 April 1 June 25 June 30 Bought 30,000 of the 100,000 outstanding shares of Olde Company for P3,000,000. Goodwill of P800,000 was included in the price. Received P120 per share dividend on Medical Company shares. Olde Company reported second quarter net income of P1,500,000 Purchased 20,000 shares of Alpha Company for P150 per share plus brokerage fee of P100,000. These shares are designated at FVOCI. Received P50 per share dividend on Alpha Company shares. Oct. 1 Dec. 31 31 Medical Company shares are selling for P250 and Alpha shares are selling for P180. 31 Olde Company reported net income of P4,000,000 for the last two quarters of the year and paid cash dividend of P1,500,000.
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