On July 1, 2022, Denver Company purchased 30,000 shares of Eagle Company's 100,000 outstanding ordinary shares for P200 per share representing 30% interest. On December 15, 2022, the investee paid P400,000 in cash dividend to the ordinary shareholders. The investee's net income for the year ended December 31, 2022 was P1,200,000 earned evenly throughout the year. What amount of income from the investment should be reported in 2022? 360,000 a. b. 180,000 120,000 d. 300,000 с.
On July 1, 2022, Denver Company purchased 30,000 shares of Eagle Company's 100,000 outstanding ordinary shares for P200 per share representing 30% interest. On December 15, 2022, the investee paid P400,000 in cash dividend to the ordinary shareholders. The investee's net income for the year ended December 31, 2022 was P1,200,000 earned evenly throughout the year. What amount of income from the investment should be reported in 2022? 360,000 a. b. 180,000 120,000 d. 300,000 с.
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
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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