Answer and show your solution

Problem 18-5 (AICPA Adapted) At the beginning of current year, Diana Company as a long-term investment a 20% ordinary share in East Company Diana paid P7,000,000 for this investment when the fair v of the investee's net assets was P35,000,000 The investee reported net income of P4,000,000 for current year and declared and paid cash dividerd P1,600,000. of What amount of revenue from the investment should reported for the current year? a. 400,000 b. 480,000 . 800,000 d. 320,000 Problem 18-6 (AICPA Adapted) On July 1, 2019, Diamond Company paid P1,000,000 for 100,000 outstanding shares which represent 40% of Silver Company At that date, the net assets of Silver, totaled P2,500,000 and the fair values of all of Ashley's identifiable assets and iabilities were equal to their carrying amount. The investee reported net income of P500,000 for 2019, of which P300,000 was for the six months ended December 31, 2019. The investee paid cash dividend of P250,000 on September 30, 2019 What amount of income should be reported from the investment in associate? a. 200,000 b. 100,000 c. 120,000 d. 80,000 378