Baby Bash Corporation acquired 10,000 Doug Company shares on February 5, 2022 at P50 which include P10 per share broker's fees and commissions. A P50,000 cash dividends were received from Doug Company on March 20, 2022. These dividends were declared on January 5 and date of record is February 10. Doug shares were split 2 for 1 on November 1. The shares were selling at P32 per share on December 31, 2022. The investments were designated at FVPL.

1. How much is initial carrying amount of investment on the date of acquisition?

a. 500,000

b. 400,000

c. 450,000

d. 350,000

2. How much should be recognized as dividend income?

a. 50,000

b. 100,000

c. 290,000

d. 0

3. What total amount of loss should be reported for the current year?

a.130,000

b. 80,000

c. 30,000

d. 20,000