Problem 7 Eve had the following transactions relating to its investment in stocks that are accounted for under cost method in 2020: Exchanged an equipment for 20,000 common stocks of Villanelle. The said equipment had a carrying value of P200,000 and fair value of P180,000. On the said date, the shares of stock had a fair value of P120 and par value of P60. Purchased 10,000 common stocks of KE Corporation, a wasting asset corporation, at P400,000 Bought 5,000 common stock shares and 1,000 preferred stock shares from Poirot Corporation for a total of P300,000. The fair value of the common stock was P20 and that of the preferred stock was P100. Bought 100,000 common stock shares from Alias Corporation for P250,000. Purchased 6,000 common shares from Thyme Corporation at P120,000. Received notice of a split up of 5-for-1. Received cash dividend of P5 each. Received property dividends from Villanelle with a carrying value of P30,000 and fair value of P25,000. Received cash dividend of P30,000 from KE Corporation. Received a 20% stock dividend on the common stocks of Poirot and subsequently sold half of it at P80,000. Received 1,000 common stocks as dividends for the preferred shares of Poirot. The fair value of the common stocks and preferred stocks were P150 and P25 each, respectively. Received from Alias notice of a 10% stock dividend but in lieu of it received P30 cash per share held. Half of the preferred shares of Poirot was redeemed on December 31, 2020 at P100,000.

Compute for the following:

a. Total dividend income

b. Total carrying value of the investment in common stocks on December 31, 2020

c. Total carrying value of the investment in preferred stocks on December 31, 2020

d. Total income derived from all the investments that should be presented in the 2020 Statement of Profits and Losses.