Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Chen Group acquired 25% of the outstanding ordinary shares of Cho Ltd on December 31, 2019. The purchase price was X180000000 for 50000 shares. Cho
Chen Group acquired 25% of the outstanding ordinary shares of Cho Ltd on December 31, 2019. The purchase price was X180000000 for 50000 shares. Cho declared and paid an 80 per share cash dividend on June 30 and on December 31, 2020. Cho reported net income of 77000000 for 2020. The fair value of Cho's shares was 43850 per share at December 31, 2020 At what amount is the investment reported on the statement of financial position under each of these methods at December 31, 2020? What is the effect on net income reported in 2020 under each of these methods? Fair Value Method Equity Method Investment amount (statement of financial position) Dividend revenue (income statement) Unrealized holding gain (income statement) in Zuzu under each of these menous! Fair Value Method Equity Method Investment amount (statement of financial position) Dividend revenue (income statement) Unrealized holding gain (income statement) Revenue from investment income statement) A Enter your final answers without using commas or yen sign, e.g., 5225. Do not leave answer fields blank. Enter 0 for amounts
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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