On January 1, 2013, Regina Company entered into a joint agreement classified as a joint venture. For an investment of P1,000,000, Regina Company obtained 30% interest in Gold Joint Venture, Inc. During the year, Gold Joint Venture, Inc. reported profit of P2,000,000 and other comprehensive income of P400,000. Gold Joint Venture, Inc. declared and paid dividends of P1,200,000 during the year. How much is the carrying amount of the investment on December 31, 2013?

On January 1, 2013, Regina Company entered into a joint agreement classified as a joint venture. For an investment of P1,000,000, Regina Company obtained 30% interest in Gold Joint Venture, Inc. During the year, Gold Joint Venture, Inc. reported profit of P2,000,000 and other comprehensive income of P400,000. Gold Joint Venture, Inc. declared and paid dividends of P1,200,000 during the year. How much is the carrying amount of the investment on December 31, 2013?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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