Answered step by step
Verified Expert Solution
Question
1 Approved Answer
109. At the beginning of current year, ABC Company acquired 200,000 ordinary shares of an investee for P9,000,000. The investment is measured at fair value
109. At the beginning of current year, ABC Company acquired 200,000 ordinary shares of an investee for P9,000,000. The investment is measured at fair value through other comprehensive income. At the time of purchase, the investee had outstanding 800,000 shares with a carrying amount of P36,000,000. The following events took place during the year.
- The investee reported net income of P1,800,000.
- ABC Company received from the investee a dividend of P0.75 per ordinary share.
- The market value of the investee's share had declined to P40 at year end.
What is the carrying amount of the investment at year-end?
- P9,000,000
- P9,300,000
- P9,450,000
- P8,000,000
- Answer not given
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started