On Jan. 1, 2020, ABC purchased 30% of the outstanding shares of an investee for P7,500,000. As of this date, the investee has an equipment recorded at P2,000,000 less than its fair value. The equipment was bought exactly two years ago and originally has a total useful life of 10 years. For the year, the investee reported net income of P3,000,000, actuarial gains of P500,000, unrealized holding loss of P300,000 through OCI, and dividends declared and paid during November of P2,000,000. For the whole year, the equity of the investee included P20,000,000 par value from ordinary shares and P10,000,000 par value from the 8%, noncumulative, nonparticipating preference shares. What should be reported as the investment in associate as of the end of the year? You may use parenthetical solutions.
solutions must be complete and in good accounting form
On Jan. 1, 2020, ABC purchased 30% of the outstanding shares of an investee for P7,500,000. As of this date, the investee has an equipment recorded at P2,000,000 less than its fair value. The equipment was bought exactly two years ago and originally has a total useful life of 10 years. For the year, the investee reported net income of P3,000,000, actuarial gains of P500,000, unrealized holding loss of P300,000 through OCI, and dividends declared and paid during November of P2,000,000. For the whole year, the equity of the investee included P20,000,000 par value from ordinary shares and P10,000,000 par value from the 8%, noncumulative, nonparticipating
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