On January 1, 2021, VDM Company paid P1,200,000 for 40,000 ordinary shares of Apple Corp., which represent a 25% investment in the net assets of Apple. VDM has the ability to exercise significant influence over Apple. VDM received a dividend of P3 per share from Apple in 2021. The reported profit of Apple for the year ended December 31, 2021 was P640,000. The balance of VDM's Investment in Apple at December 31, 2021 should be A P1,480,000 B P1,240,000 P1,360,000 D P1,200,000
On January 1, 2021, VDM Company paid P1,200,000 for 40,000 ordinary shares of Apple Corp., which represent a 25% investment in the net assets of Apple. VDM has the ability to exercise significant influence over Apple. VDM received a dividend of P3 per share from Apple in 2021. The reported profit of Apple for the year ended December 31, 2021 was P640,000. The balance of VDM's Investment in Apple at December 31, 2021 should be A P1,480,000 B P1,240,000 P1,360,000 D P1,200,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 14RE
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