COMPUTE FOR YOUR CARRYING AMOUNT FOR THE YEAR ENDED 2021 * MAB Company acquires 20% equity...

 

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COMPUTE FOR YOUR CARRYING AMOUNT FOR THE YEAR ENDED 2021 * MAB Company acquires 20% equity interest from BAM Company on January 1, 2020 for P200, 000. On December 30, 2020 BAM Company reported a P 400, 000 profit and declared a dividends P 200, 000. December 30, 2021 Reported losses P 400, 000 December 30, 2022 • Reported profit P 600, 000 Declared dividends of 150, 000 COMPUTE FOR YOUR CARRYING AMOUNT FOR THE YEAR ENDED 2021 * MAB Company acquires 20% equity interest from BAM Company on January 1, 2020 for P200, 000. On December 30, 2020 BAM Company reported a P 400, 000 profit and declared a dividends P 200, 000. December 30, 2021 Reported losses P 400, 000 December 30, 2022 • Reported profit P 600, 000 Declared dividends of 150, 000

Answer rating: 100% (QA)

To compute for the carrying amount of the equity interest we need to consider the changes in the ... View the full answer