Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000. During 2019, Nino earned P150,000 and paid dividends of P90,000. Santo's 30% interest in Nino gives Santo the ability to exercise significant influence over Nino's operating and financial policies. During 2020, Nino earned P180,000 and paid dividends of P60,000 on April 1 and P60,000 on October 1. On July 1, 2020, Santo sold half of its stock in Nino for its fair value of P237,000. Thereafter, Santo, Inc. designated the investment as FVTOCI. The remaining shares of Nino Corp. held by Santo, Inc. have a fair value of P220,000 at December 31, 2020. The gain on remeasurement of the retained investment is P48,000 Nil P43,500 P57,000

Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000. During 2019, Nino earned P150,000 and paid dividends of P90,000. Santo's 30% interest in Nino gives Santo the ability to exercise significant influence over Nino's operating and financial policies. During 2020, Nino earned P180,000 and paid dividends of P60,000 on April 1 and P60,000 on October 1. On July 1, 2020, Santo sold half of its stock in Nino for its fair value of P237,000. Thereafter, Santo, Inc. designated the investment as FVTOCI. The remaining shares of Nino Corp. held by Santo, Inc. have a fair value of P220,000 at December 31, 2020. The gain on remeasurement of the retained investment is P48,000 Nil P43,500 P57,000

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 14RE

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Santo, Inc. acquired 30% of Nino Corp's voting stock on January 1, 2019 for P360,000. During 2019, Nino earned P150,000 and paid dividends of P90,000. Santo's 30% interest in Nino gives Santo the ability to exercise significant influence over Nino's operating and financial policies. During 2020, Nino earned P180,000 and paid dividends of P60,000 on April 1 and P60,000 on October 1. On July 1, 2020, Santo sold half of its stock in Nino for its fair value of P237,000. Thereafter, Santo, Inc. designated the investment as FVTOCI. The remaining shares of Nino Corp. held by Santo, Inc. have a fair value of P220,000 at December 31, 2020. How much is the total amount to be recognized in Santo, Inc.s 2020 profit or loss related to this investment? O P87.000 O P114.000 O P158,500 O P123.000
Santo, Inc. acquired 30% of Nino Corp's voting stock on January 1, 2019 for P360,000. During 2019, Nino earned P150,000 and paid dividends of P90,000. Santo's 30% interest in Nino gives Santo the ability to exercise significant influence over Nino's operating and financial policies. During 2020, Nino earned P180,000 and paid dividends of P60,000 on April 1 and P60,000 on October 1. On July 1, 2020, Santo sold half of its stock in Nino for its fair value of P237,000. Thereafter, Santo, Inc. designated the investment as FVTOCI. The remaining shares of Nino Corp. held by Santo, Inc. have a fair value of P220,000 at December 31, 2020. The gain on sale of investment is A.P39,000 B.P48,000 C.P43,500 D.P57,000
Santo, Inc. acquired 30% of Nino Corp's voting stock on January 1, 2019 for P360,000. During 2019, Nino earned P150,000 and paid dividends of P90,000. Santo's 30% interest in Nino gives Santo the ability to exercise significant influence over Nino's operating and financial policies. During 2020, Nino earned P180,000 and paid dividends of P60,000 on April 1 and P60,000 on October 1. On July 1, 2020, Santo sold half of its stock in Nino for its fair value of P237,000. Thereafter, Santo, Inc. designated the investment as FVTOCI. The remaining shares of Nino Corp. held by Santo, Inc. have a fair value of P220,000 at December 31, 2020.
Santo, Inc. acquired 30% of Nino Corp.s voting stock on January 1, 2019 for P360,000. During 2019, Nino earned P150,000 and paid dividends of P90,000. Santo's 30% interest in Nino gives Santo the ability to exercise significant influence over Nino's operating and financial policies. During 2020, Nino earned P180,000 and paid dividends of P60,000 on April 1 and P60,000 on October 1. On July 1, 2020, Santo sold half of its stock in Nino for its fair value of P237,000. Thereafter, Santo, Inc. designated the investment as FVTOCI. The remaining shares of Nino Corp. held by Santo, Inc. have a fair value of P220,000 at December 31, 2020. The gain on remeasurement of the retained investment is O P43,500 O Nil O P48.000 O P57.000
Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000. During 2019, Nino earned P150,000 and paid dividends of P90,000. Santo's 30% interest in Nino gives Santo the ability to exercise significant influence over Nino's operating and financial policies. During 2020, Nino earned P180,000 and paid dividends of P60,000 on April 1 and P60,000 on October 1. On July 1, 2020, Santo sold half of its stock in Nino for its fair value of P237,000. Thereafter, Santo, Inc. designated the investment as FVTOCI. The remaining shares of Nino Corp. held by Santo, Inc. have a fair value of P220,000 at December 31, 2020. The gain on remeasurement of the retained investment is Group of answer choices: P48,000 P57,000 Nil P43,500
Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000. During 2019, Nino earned P150,000 and paid dividends of P90,000. Santo's 30% interest in Nino gives Santo the ability to exercise significant influence over Nino's operating and financial policies. During 2020, Nino earned P180,000 and paid dividends of P60,000 on April 1 and P60,000 on October 1. On July 1, 2020, Santo sold half of its stock in Nino for its fair value of P237,000. Thereafter, Santo, Inc. designated the investment as FVTOCI. The remaining shares of Nino Corp. held by Santo, Inc. have a fair value of P220,000 at December 31, 2020. The gain on remeasurement of the retained investment is choices: A) Nil B) P57,000 C) P48,000 D) P43,500
Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000. During 2019, Nino earned P150,000 and paid dividends of P90,000. Santo's 30% interest in Nino gives Santo the ability to exercise significant influence over Nino's operating and financial policies. During 2020, Nino earned P180,000 and paid dividends of P60,000 on April 1 and P60,000 on October 1. On July 1, 2020, Santo sold half of its stock in Nino for its fair value of P237,000. Thereafter, Santo, Inc. designated the investment as FVTOCI. The remaining shares of Nino Corp. held by Santo, Inc. have a fair value of P220,000 at December 31, 2020. The gain on remeasurement of the retained investment is
Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000. During 2019, Nino earned P150,000 and paid dividends of P90,000. Santo's 30% interest in Nino gives Santo the ability to exercise significant influence over Nino's operating and financial policies. During 2020, Nino earned P180,000 and paid dividends of P60,000 on April 1 and P60,000 on October 1. On July 1, 2020, Santo sold half of its stock in Nino for its fair value of P237,000. Thereafter, Santo, Inc. designated the investment as FVTOCI. The remaining shares of Nino Corp. held by Santo, Inc. have a fair value of P220,000 at December 31, 2020. The gain on remeasurement of the retained investment is a. Nil b. P48,000 c. P57,000 d. P43,500
Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000. During 2019, Nino earned P150,000 and paid dividends of P90,000. Santo's 30% interest in Nino gives Santo the ability to exercise significant influence over Nino's operating and financial policies. During 2020, Nino earned P180,000 and paid dividends of P60,000 on April 1 and P60,000 on October 1. On July 1, 2020, Santo sold half of its stock in Nino for its fair value of P237,000. Thereafter, Santo, Inc. designated the investment as FVTOCI. The remaining shares of Nino Corp. held by Santo, Inc. have a fair value of P220,000 at December 31, 2020. How much is the total amount to be recognized in Santo, Inc.'s 2020 profit or loss related to this investment? P114,000 P123,000 P87,000 P158,500 The Gain on remeasurement of the retained investment is Nil P48,000 P43,500 P57,000
Rich, Inc. acquired 30% of Doane Corp.'s voting stock on January 1, 2020 for $600,000. During 2020, Doane earned 240,000 and paid dividends of 150,000. Rich's 30% interest in Doane gives Rich the ability to exercise significant influence over Doane's operating and financial policies. During 2021, Doane earned 300,000 and paid dividends of 90,000 on April 1 and 90,000 on October 1. On July 1, 2021, Rich sold half of its stock in Doane for 396,000 cash. Before income taxes, what amount should Rich include in its 2020 income statement as a result of the investment? * a. 240,000 b. 150,000 c. 72,000 d. 45,000
Ivanhoe, Inc. acquired 30% of Tamarisk Corporation's voting stock on January 1, 2021 for $ 1020000. During 2021, Tamarisk earned $ 406000 and paid dividends of $ 254000. Ivanhoe's 30% interest in Tamarisk gives Ivanhoe the ability to exercise significant influence over Tamarisk's operating and financial policies. During 2022, Tamarisk earned $ 506000 and paid cash dividends of $ 154000 on April 1 and $ 154000 on October 1. On July 1, 2022, Ivanhoe sold half of its stock in Tamarisk for $ 666000 cash.The carrying amount of this investment in Ivanhoe's December 31, 2021 balance sheet should be
Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 forP360,000. During 2019, Nino earned P150,000 and paid dividends of P90,000.Santo's 30% interest in Nino gives Santo the ability to exercise significant influenceover Nino's operating and financial policies. During 2020, Nino earned P180,000 andpaid dividends of P60,000 on April 1 and P60,000 on October 1.On July 1, 2020, Santo sold half of its stock in Nino for its fair value of P237,000.Thereafter, Santo, Inc. designated the investment as at fair value through othercomprehensive income. The remaining shares of Nino Corp. held by Santo, Inc.have a fair value of P220,000 at December 31, 2020.How much is the total amount to be recognized in Santo, Inc.'s 2020 profit or lossrelated to this investment? 1.The gain on measurement of the retained investment is 2. The gain on sale of investment is