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- On Sept. 1, 20x1, Lone Co. acquires 35% of the 100,000 qutstanding shares of Social Co. for P1,200,000. Social Co.'s net identifiable assets are fairly valued on this date. In 20x1, Social Co. reports profit of P1,500,000 and declares and pays cash dividends of P600,000. For the year ended Dec. 31, 20x1, how much should Lone Co. report as share in the associate's profit and investment in associate, respectively? C. 175,000; 1,165,000 d. 210,000; 1,200,000 c. 350,000; 1,340,000 d. 131,250; 1,121,250

- On Sept. 1, 20x1, Lone Co. acquires 35% of the 100,000 qutstanding shares of Social Co. for P1,200,000. Social Co.'s net identifiable assets are fairly valued on this date. In 20x1, Social Co. reports profit of P1,500,000 and declares and pays cash dividends of P600,000. For the year ended Dec. 31, 20x1, how much should Lone Co. report as share in the associate's profit and investment in associate, respectively? C. 175,000; 1,165,000 d. 210,000; 1,200,000 c. 350,000; 1,340,000 d. 131,250; 1,121,250

Cornerstones of Financial Accounting
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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45 Investments 1N 2. On Sept. 1, 20x1, Lone Co. acquires 35% of the 100,000 2. On outstanding shares of Social Co. for P1,200,000. Social Co.'s net identifiable assets are fairly valued on this date. In 20x1. Social Co. reports profit of P1,500,000 and declares and pays cash dividends of P600,000. For the year ended Dec. 31, 20x1, how much should Lone Co. report as share in the associate's profit and investment in associate, respectively? c. 175,000; 1,165,000 d. 210,000; 1,200,000 c. 350,000; 1,340,000 d. 131,250; 1,121,250 3. On Jan, 1, 20x1. Ice Co acquired 25.000 newly issued shares of
Transcribed Image Text:45 Investments 1N 2. On Sept. 1, 20x1, Lone Co. acquires 35% of the 100,000 2. On outstanding shares of Social Co. for P1,200,000. Social Co.'s net identifiable assets are fairly valued on this date. In 20x1. Social Co. reports profit of P1,500,000 and declares and pays cash dividends of P600,000. For the year ended Dec. 31, 20x1, how much should Lone Co. report as share in the associate's profit and investment in associate, respectively? c. 175,000; 1,165,000 d. 210,000; 1,200,000 c. 350,000; 1,340,000 d. 131,250; 1,121,250 3. On Jan, 1, 20x1. Ice Co acquired 25.000 newly issued shares of
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