On January 1, 2022, SME X & SME Y each acquired 30% of the ordinary shares of entity Z for P300,000. SME A & SME B immediately agreed to share control over entity Z. On December 31, 2022, entity Z declared a dividend of P100,000 for the year 2022. Entity Z reported a profit of P60,000 for the year ended December 31, 2022. On December 31, 2022, the recoverable amount of each venturers investment in entity Z is P292,000 (fair value of P295,000 lest cost to sell of P3,000). However, there is no published price quotation for entity Z.

33. What is the investment balance of SME X at the end of 2022 in entity Z under the equity model?

285,000

290,000

288,000

292,000

34. What is the profit (loss) to be recognized by SME K in 2022 from entity Z using the equity model?

15,000

18,000

30,000

12,000

35. What is the investment balance of SME X at the end of 2022 in entity Z under the cost model?

285,000

290,000

288,000

292,000

36. What is the profit (loss) to be recognized by SME K in 2022 from entity Z using the cost model?

35,000

18,000

30,000

22,000

37. What is the investment balance of SME X at the end of 2022 in entity Z under the fair value model?

295,000

290,000

300,000

292,000

38. What is the profit (loss) to be recognized by SME K in 2022 from entity Z using the fair value model?

(5,000)

22,000

30,000

25,000

39. The balance of the Joint Operation's account before the distribution of profit is 4,000 (credit), if unsold merchandise amounted to P6,000, the joint operations profit (loss) is

a. 2,000

b. 10,000

c. (2,000)

d. (10,000)

40. The balance of the Joint Operation's account before the distribution of profit is 4,000 (debit), if unsold merchandise amounted to P6,000, the joint operations profit (loss) is

a. 2,000

b. 10,000

c. (2,000)

d. (10,000)