On January 1, 2018, Koehn Company bought 25% of outstanding ordinary shares of Cosby Company for P1 million. The book value of the net asset acquired was P3 million. The difference was attributable to the fair value of Cosby's machinery exceeding book value. The machinery has a remaining life of 10 years. 0n January 3, 2018, Koehn Company sold equipment costing P600,000 to Cosby Company for P800,000. The equipment has a remaining life of five years. In 2018, Cosby Company reported a net income of P1,000,000. Cash dividends of P100,000 were declared and paid by Cosby Company on December 31, 2018.

Required

How much is the carrying amount of the investment in associate on December 31, 2018?

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Stage 1 On January 1 2018 Koehn Company purchased 25 remarkable customary portions of Cosby Company ... View the full answer