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problem 18-3 (AICPA Adapted) At the beginning of current year, Sam Company purchased 20% ofanother entity's ordinary shares outstanding for P6,000,000. The acquisition cost is equal to the carrying amount of the net assets acquired. During the currer year, the investee reported net income of P7,000,000 and paid cash dividend of P4,000,000. What is the carrying amount of the investment in associate at year-end? a. 5,200,000 b. 6,000,000 c. 6,600,000 d. 7,400,000 Problem 18-4 (AICPA Adapted) At the beginning of current year, Farah Company acquired 20% of the outstanding ordinary shares of another entity for P8,000,000 This investment gave Farah the ability to exercise significant influence over the investee. The carrying amount of the acquired shares was P6,000,000. The excess of cost over carrying amount cannnot be attributed to any particular identifiable asset. The investee reported net income of P1,800,000 and paid caslh dividend of P400,000 and thereafter issued 5% share dividend during the current year What is the carrying amount of the investment in associate at year-end? a. 6,280,000 b. 7,800,000 c. 8,000,000 d. 8,280,000 377