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Palagay po ng please provide solutuons for the two items On January 1 , 2 0 2 1 , Flesh - n - Bone Corporation

Palagay po ng please provide solutuons for the two items

On January 1,2021, Flesh-n-Bone Corporation acquired 30% of Doug Corporation's 200,000 outstanding

shares at P50 per share. Doug's net assets had a book value on the same date at P8,200,000. On the

acquisition date, the following assets were deemed understated:

Building having a remaining useful life of 20 years was understated by P1,500,000.

Equipment having a remaining life of 10 years was understated by P500,000. Doug reported net income

for the year at ????2,000,000 and paid cash dividends of ????10 per share by December 31.

How much investment income should be reported in Flesh-n-Bone Corporation's profit or loss for

2021?

a.600,000

b.577,500

c.622,500

d.562,500

What is the carrying amount of the investment in Doug as of December 31,2021?

a.3,562,500

b.3,000,000

c.3,622,500

d.3,022,500

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