7. On January 4, 2018, Karen Company paid Php 30,000,000 for 1,000,000 shares of Klaire Company ordinary shares. The investment represents 20% interest in the net assets of Klaire Company and gave Karen Company the ability to exercise significant influence over Klaire operations. Karen Company receives dividends of Php 1/share on December 15, 2018 and Klaire reported a net income of Php 8,000,000 for the year ended December 31, 2018. The market value of Klaire Company ordinary shares at December 31, 2018 was Php 32/share. On the purchase date, the book value off Klaire net asset was Php 120,000,000 and the fair market value of Klaire Company depreciable asset, with an average remaining useful life of 6 years, exceeded their book value by Php 6,000,000. The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable goodwill.

Required: Based on the above, answer the following:

1. How much is the implied goodwill from the acquisition?
2. What amount of investment revenue should Karen Company report on its net income statement for the year ended December 31, 2018 under the fair value method?
3. What amount of investment revenue should Karen Company report on its income statement for the year ended December 31, 2018 under the equity method?
4. Under the equity method, the carrying value of Karen Company investment in ordinary share of Klaire Company on December 31, 2018
5. What amount should Karen Company report on its December 31, 2018 statement of financial position as its investment in Klaire Company under fair value method?