Glorious Company acquired 40% interest in an associate, Alte At the acquisition date, there were no differences between Alte Company reported net income of P2,000,000 for 3720 Problem 18-2 (IFRS) Company, for P5,000,000 on January 1, 2020, fair value and carrying amount of identifiable assets and P3,000,000 for 2021. On December 31, 2020 and 2021, Alta Company paid cab dividend of P800,000 and P1,000,000, respectively. a. On January 1, 2020, Alta Company sold an equipment costing P500,000 to Glorious Company for P800,000 Glorious Company applies a 10% straight line depreciation. b. On July 1, 2021, Alta Company sold an equipment in P900,000 to Glorious Company. The carrying amount of the equipment is P500,000 at the time of sale. The remaining life of the equipment is 5 years and Glorious Company uses the straight line depreciation. c. On December 1, 2021. Alta Company sold an inventory to Glorious Company for P2,800,000. The inventory had a cost of P2,000,000 and was still on hand on December 31, 2021. Required: 1. Determine the investor's share in the profit of the associate for 2020. 2. Determine the investor's share in the profit of the associate for 2021. 3. Prepare journal entries on the books of Glorious Company for 2020 and 2021 in relation to the investment in associnte. 4. Determine the carrying amount of the investment in associate on December 31, 2021. 510 Glorious Company acquired 40% interest in an associate, Alte At the acquisition date, there were no differences between Alte Company reported net income of P2,000,000 for 3720 Problem 18-2 (IFRS) Company, for P5,000,000 on January 1, 2020, fair value and carrying amount of identifiable assets and P3,000,000 for 2021. On December 31, 2020 and 2021, Alta Company paid cab dividend of P800,000 and P1,000,000, respectively. a. On January 1, 2020, Alta Company sold an equipment costing P500,000 to Glorious Company for P800,000 Glorious Company applies a 10% straight line depreciation. b. On July 1, 2021, Alta Company sold an equipment in P900,000 to Glorious Company. The carrying amount of the equipment is P500,000 at the time of sale. The remaining life of the equipment is 5 years and Glorious Company uses the straight line depreciation. c. On December 1, 2021. Alta Company sold an inventory to Glorious Company for P2,800,000. The inventory had a cost of P2,000,000 and was still on hand on December 31, 2021. Required: 1. Determine the investor's share in the profit of the associate for 2020. 2. Determine the investor's share in the profit of the associate for 2021. 3. Prepare journal entries on the books of Glorious Company for 2020 and 2021 in relation to the investment in associnte. 4. Determine the carrying amount of the investment in associate on December 31, 2021. 510