Pod Company purchased 25% of the outstanding ordinary shares of Jobs, Inc. and subsequently used the equity method to account for the investment. During 2021 Jobs, Inc. reported net income of P420,000 and distributed dividends of P180,000. The ending balance in the Equity Investments account at December 31, 2021 was P320,000 after applying the equity method during 2021. What was the purchase price Pod Company paid for its investment in Jo
Pod Company purchased 25% of the outstanding ordinary shares of Jobs, Inc. and subsequently used the equity method to account for the investment. During 2021 Jobs, Inc. reported net income of P420,000 and distributed dividends of P180,000. The ending balance in the Equity Investments account at December 31, 2021 was P320,000 after applying the equity method during 2021. What was the purchase price Pod Company paid for its investment in Jo
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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On January 2, 2021 Pod Company purchased 25% of the outstanding ordinary shares of Jobs, Inc. and subsequently used the equity method to account for the investment. During 2021 Jobs, Inc. reported net income of P420,000 and distributed dividends of P180,000. The ending balance in the Equity Investments account at December 31, 2021 was P320,000 after applying the equity method during 2021. What was the purchase price Pod Company paid for its investment in Jobs, Inc?
a.) P170,000
b.) P260,000
c.) P380,000
d.) P470,000
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