At the beginning of the current year, Valkyrie Company acquired as a long-term investment a 20%...

 

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At the beginning of the current year, Valkyrie Company acquired as a long-term investment a 20% interest in another entity. Valkyrie paid P7,000,000 for this investment when the fair value of the net assets was P35,000,000. The investor can exercise significant influence over the investee's operating and financial policies. During the current year, the investee reported net income of P6,000,000 and paid cash dividends of P4,000,000. 12. What amount of revenue from the investment should be reported for the current year? A. 400,000 B. 600,000 C. 800,000 D. 1,200,000 At the beginning of the current year, Valkyrie Company acquired as a long-term investment a 20% interest in another entity. Valkyrie paid P7,000,000 for this investment when the fair value of the net assets was P35,000,000. The investor can exercise significant influence over the investee's operating and financial policies. During the current year, the investee reported net income of P6,000,000 and paid cash dividends of P4,000,000. 12. What amount of revenue from the investment should be reported for the current year? A. 400,000 B. 600,000 C. 800,000 D. 1,200,000

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