2 pts Question 6 On January 1, 2019, Lallo Company purchased 15% of Vintar Company's ordinary shares for P20,000,000. The following data concerning Vintar Company are available: 2019 2020 Net income P6,000,000 P7,000,000 Cash dividend paid None 15,000,000 In its income statement for the year ended December 31, 2020, how much should Lallo report as income from this investment? Question 5 An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisitiort costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020? Question 4 2 pts On July 1, 2020, Diamond, Inc, paid P1,000,000 for 100,000 ordinary shares (40%) of Ashley Corporation. At that date the net assets of Ashley totaled P2,500,000 and the fair values of all of Ashley's identifiable assets and liabilities were equal to their book values. Ashley reported profit of P500,000 for the year ended December 31, 2020, of which P300,000 was for the six months ended December 31, 2020. Ashley paid cash dividends of P250,000 on September 30, 2020. Diamond does not elect the fair yalue option for reporting its investment in Ashley. In its income statement for the year ended December 31, 2020, what amount of income should Diamond report from its investments in Ashley? Question 3 2 pts Chu Company acquired a 40% interest in Wawa Company for P1,700,000 on January 1, 2020. The shareholders' equity of Wawa Company on January 1 and December 31, 2020 is presented below: January 1 December 31 Share capital 3,000,000 3.000.000 Revaluation surplus 1,300,000 Retained earnings 1,000,000 1.500.000 On January 1, 2020, all the identifiable assets and liabilities of Wawa Company were recorded at fair value. Wawa Company reported profit before income tax of P1,000,000 and paid dividends of P150,000 to shareholders during the current year. The revaluation surplus is the result of the revaluation of land recognized by Wawa Company on December 31, 2020. Wawa presents'OCI net of applicable income tax. Additionally, depreciation is provided by Wawa Company on the diminishing balance method whereas Chu Company uses the straight-line. Had Wawa Company used the straight line, the accumulated depreciation would be increased by P200,000. The tax rate is 35%. Chu Company should report its investment in associate on December 31, 2020 at