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blem 18-7 (AICPA Adapted) pro July 1, 2019, Denver Company purchased 30,000 shares n Company's 100,000 outstanding ordinary shares for Eag o?00per share representing 30% interest. December 15, 2019, the investee paid P400,000 in caslh On vidend to the ordinary shareholders. investee's net income for the year ended December 31, The 19 was P1,200,000 earned evenly throughout the yeair hat amount of income from the investment should be reported in 2019? a. 360,000 b. 180,000 c. 120,000 d. 60,000 Problem 18-8 (AICPA Adapted) On April 1, 2019, Ben Company purchased 40% of the outstanding ordinary shares of Clarke Company for P10,000,000. On that date, Clarke's net assets totaled P20,000,000 and Ben cannot attribute the Clarke over its equity in Clarke's net assets to any particular factor. The investee reported net income of P5,000,000 for 2019. excess of the cost of the investment in What is the maximum amount which could be included in 2019 income before tax to reflect the equity in net income of investee? a. 1,400,000 b. 1,500,000 c. 2,000,000 d. 1,850,000 379