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Richard Company purchased 20% of Cliff Company for P3,000,000 during the current year. This investment did not give Richard Company the ability to exercise significant influence over Cliff Company. During the year, Cliff Company reported net income of P3,500,000 and paid cash dividends of P4,000,000. What is the carrying amount of the investment in Cliff Company ot the end of the curent year? o a 2200,000 O b.2900,000 O c. 3,000,000 o d 3,700,000

Richard Company purchased 20% of Cliff Company for P3,000,000 during the current year. This investment did not give Richard Company the ability to exercise significant influence over Cliff Company. During the year, Cliff Company reported net income of P3,500,000 and paid cash dividends of P4,000,000. What is the carrying amount of the investment in Cliff Company ot the end of the curent year? o a 2200,000 O b.2900,000 O c. 3,000,000 o d 3,700,000

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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Richard Company purchased 20% of Cliff Company for P3,000,000 during the current year. This investment did not give Richard Company the ability to exercise significant influence over Cliff Company. During the year, Cliff Company reported net income of P3,500,000 and paid cash dividends of P4,000,000. What is the carrying amount of the investment in Cliff Company ot the end of the current year? o a.2.200,000 O b.2,900,000 O .3,000,000 o d. 3,700,000
Transcribed Image Text:Richard Company purchased 20% of Cliff Company for P3,000,000 during the current year. This investment did not give Richard Company the ability to exercise significant influence over Cliff Company. During the year, Cliff Company reported net income of P3,500,000 and paid cash dividends of P4,000,000. What is the carrying amount of the investment in Cliff Company ot the end of the current year? o a.2.200,000 O b.2,900,000 O .3,000,000 o d. 3,700,000
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