What total amount of income from the investments should be recognized for the current year? ...
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What total amount of income from the investments should be recognized for the current year? • At the beginning of current year, Dumar Company acquired equity investments. Purchased 8,000 ordinary shares of Viking Company for P1,600,000. The investment is considered nontrading and Dumar irrevocably elected to classify the asset in FVOCI. During the year, Viking Company paid a cash dividend of P30 per share. At year-end, Viking's shares were selling for P175 per share. • Purchased 40% of the outstanding ordinary shares of Rica Company for P3,500,000 when the net assets of the investee amounted to P7,000,000. At acquisition date, the carrying amounts of the identifiable assets and liabilities of the investee were equal to their fair value, except for equipment for which the fair value was P1,500,000 greater than carrying amount and inventory whose fair value was P500,000 greater than cost. The equipment has a remaining life of 4 years and half of the inventory was sold during the year. The investee reported net income of P4,000,000 and paid no dividends during the year. What total amount of income from the investments should be recognized for the current year? • At the beginning of current year, Dumar Company acquired equity investments. Purchased 8,000 ordinary shares of Viking Company for P1,600,000. The investment is considered nontrading and Dumar irrevocably elected to classify the asset in FVOCI. During the year, Viking Company paid a cash dividend of P30 per share. At year-end, Viking's shares were selling for P175 per share. • Purchased 40% of the outstanding ordinary shares of Rica Company for P3,500,000 when the net assets of the investee amounted to P7,000,000. At acquisition date, the carrying amounts of the identifiable assets and liabilities of the investee were equal to their fair value, except for equipment for which the fair value was P1,500,000 greater than carrying amount and inventory whose fair value was P500,000 greater than cost. The equipment has a remaining life of 4 years and half of the inventory was sold during the year. The investee reported net income of P4,000,000 and paid no dividends during the year.
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The image contains two cases of investments acquired by Dumar Company and we need to calculate the total amount of income that should be recognized for the current year from these investments Lets dea... View the full answer
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
Posted Date:
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