Gold Company acquired 30% of Silver Company’s voting share capital for P2,000,000 on January 1, 2023. Gold’s 30% interest in Silver gave Gold the ability to exercise significant influence. During 2023, Silver earned P1,500,000 and paid dividend of P800,000. Silver reported earnings P3,000,000 for the year ended December 31, 2024. The income was earned evenly throughout 2024.

On July 1, 2024, Gold sold half of the investment in Silver for P1,800,000 cash. Silver paid dividend of P1,000,000 on October 1, 2024. The fair value of the retained investment is P1,900,000 on July 1, 2024 and P2,300,000 on December 31, 2024. The retained investment is to be held as financial asset at FVOCI.

• On December 31, 2023, what is the carrying amount of the investment in associate?

• What total amount of income in profit or loss should be reported in 2024?

Answer rating: 100% (QA)

what is the carrying Amount of Investment In Associate Gold acquired 30 of signee companys Voting ... View the full answer