nswer in 10 minutes please Vince Company invested P2,000,000 in Alfred Company for 25% interest. Alfred paid out 40% of net income in dividends each year. The investment account showed the following details: Initial cost P5,000,000 Debit to the investment account 1,000,000 Credit to the investment account ( 400,000) Investment balance at year-end P5,600,000 What amount of investment income was reported by Vince? a. P 650,000 b. P1,000,000 c. P1,600,000
nswer in 10 minutes please Vince Company invested P2,000,000 in Alfred Company for 25% interest. Alfred paid out 40% of net income in dividends each year. The investment account showed the following details: Initial cost P5,000,000 Debit to the investment account 1,000,000 Credit to the investment account ( 400,000) Investment balance at year-end P5,600,000 What amount of investment income was reported by Vince? a. P 650,000 b. P1,000,000 c. P1,600,000
Chapter7: Stocks (equity) - Characterstics And Valuation
Section: Chapter Questions
Problem 20PROB
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Answer in 10 minutes please
Vince Company invested P2,000,000 in Alfred Company for 25% interest. Alfred paid out 40% of net income in dividends each year. The investment account showed the following details:
Initial cost P5,000,000
Debit to the investment account 1,000,000
Credit to the investment account ( 400,000)
Investment balance at year-end P5,600,000
What amount of investment income was reported by Vince?
a.
P 650,000
b.
P1,000,000
c.
P1,600,000
d.
P1,400,000
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