On January 1, 2002, Capitech Corporation acquired Logirun, Inc. as a long-term investment for ₱250,000 (a 30 percent ordinary share interest in Logirun). On that date, Logirun had net assets with a book value and fair value of ₱800,000. During 2002, Logirun reported profit of ₱90,000 and declared and paid cash dividends of ₱20,000. What is the maximum amount of income that Capitech should report from this investment for 2002? 6,000 26,750 21,000 27,000

On January 1, 2002, Capitech Corporation acquired Logirun, Inc. as a long-term investment for ₱250,000 (a 30 percent ordinary share interest in Logirun). On that date, Logirun had net assets with a book value and fair value of ₱800,000. During 2002, Logirun reported profit of ₱90,000 and declared and paid cash dividends of ₱20,000. What is the maximum amount of income that Capitech should report from this investment for 2002? 6,000 26,750 21,000 27,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 11MCQ

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