On July 1, 2022, Diamond Company paid P1,000,000 for 100,000 outstanding shares which represent 40% of Silver Company. At that date, the net assets of Silver Company totaled P2,500,000 and the fair values of all of Silver Company's identifiable assets and liabilities were equal to their carrying amount. The investee reported net income of P500,000 for 2022, of which P300,000 was for the six months ended December 31. 2022. The investee paid cash dividend of P250,000 on September 30, 2022. What amount should be reported as carrying amount of the investment in associate on December 31, 2022? a. 1,120,000 b. 1,200,000 C. 1,020,000 d. 1,100,000

On July 1, 2022, Diamond Company paid P1,000,000 for 100,000 outstanding shares which represent 40% of Silver Company. At that date, the net assets of Silver Company totaled P2,500,000 and the fair values of all of Silver Company's identifiable assets and liabilities were equal to their carrying amount. The investee reported net income of P500,000 for 2022, of which P300,000 was for the six months ended December 31. 2022. The investee paid cash dividend of P250,000 on September 30, 2022. What amount should be reported as carrying amount of the investment in associate on December 31, 2022? a. 1,120,000 b. 1,200,000 C. 1,020,000 d. 1,100,000

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 19E

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