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On January 1, 2019, Philip Co. purchased 300,000 ordinary shares of Elizabeth Co. at P16 per share, representing 22% ownership in Elizabeth. This allowed Philip

On January 1, 2019, Philip Co. purchased 300,000 ordinary shares of Elizabeth Co. at P16 per share, representing 22% ownership in Elizabeth. This allowed Philip Co. to exercise significant control over Elizabeth Co. Elizabeth declared and paid dividends of P1.5 and P3 in 2019 and 2020, respectively. Elizabeths net income in 2019 and 2020 was P3,200,000 and P4,000,000, respectively.

1. Determine the carrying amount of Philips investment on December 31, 2019?

2. Determine the carrying amount of Philips investment on December 31, 2020?

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