Perseverance Company received dividends from its investments in ordinary shares during the year 2019 as follows A share dividend of 20,000 shares from A Company when the market price of As shares was P30 per share A cash dividend of P2,000,000 from B Company in which Perseverance owns a 20 interest A cash dividend of P1,500,000 from C Company in which Perseverance owns a 10 interest 10,000 ordinary shares of D Company in lieu of cash dividend of P20 per share The market price of D Companys shares was P180 Perseverance holds originally 100,000 ordinary shares of D Company Perseverance owns 5 interest in D Company A liquidating dividend of P2,000,000 from E Company Perseverance owns a 5 interest in E Company A dividend in kind of one ordinary share of X Company for every 5 ordinary shares of F Company held Perseverance holds 200,000 F Company shares which have a market price of P50 per share The market price of X Companys ordinary share is P30 per share What amount of dividend income should Perseverance report in its 2019 income statement

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Posted on Sep 29, 2024

Perseverance Company received dividends from its investments in ordinary shares during the year 2019 as follows:

A share dividend of 20,000 shares from A Company when the market price of As shares was P30 per share.
A cash dividend of P2,000,000 from B Company in which Perseverance owns a 20% interest.
A cash dividend of P1,500,000 from C Company in which Perseverance owns a 10% interest.
10,000 ordinary shares of D Company in lieu of cash dividend of P20 per share. The market price of D Companys shares was P180. Perseverance holds originally 100,000 ordinary shares of D Company. Perseverance owns 5% interest in D Company.
A liquidating dividend of P2,000,000 from E Company. Perseverance owns a 5% interest in E Company.
A dividend in kind of one ordinary share of X Company for every 5 ordinary shares of F Company held. Perseverance holds 200,000 F Company shares which have a market price of P50 per share. The market price of X Companys ordinary share is P30 per share.