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Problem 16-3 (IAA) moldos Effective Company had the following long-term investments at the beginning of the current year: Investment in SMC preference shares, 12% P200 par, 5,000 shares Investment in Benguet ordinary shares, 10,000 shares 1,200,000 1,000,000 During the current year, the following transactions were completed: 1. Purchased 4,000 ordinary shares of ANA Company for P300,000. 2. Received 2,000 ordinary shares of Benguet Company in lieu of a cash dividend of P10 per share. On this date, Benguet ordinary share has a quoted market of P60. 3. Purchased 6,000 ordinary shares of ANA Company for P420,000. 4. Received semiannual dividend on SMC Company 12% preference share. 5. ANA ordinary share was split on a 2-for-1 basis. 6. Sold 8,000 ordinary shares of ANA Company at P85 less transaction costs of 5%. Use average approach. Required: a. Prepare journal entries to record the transactions. b. Prepare a summary of the portfolio of investments stating the number of shares and the corresponding cost. NU Pr Problem 17-3 (IFRS) Czar Company acquired a 40% interest in Film Company for P1,700,000 on January 1, 2020. The shareholders' equity of Film Company on January 1 and December 31, 2020 is as follows: At 30 sh t January 1 3,000,000 December 31 3,000,000 1,300,000 1,500,000 Share capital Revaluation surplus Retained earnings 1,000,000 On January 1, 2020, all the identifiable assets and liabilities of Film Company were recorded at fair value. Film Company reported profit of P650,000, after income tax expense of P350,000 and paid dividends of P150,000 to shareholders during the current year. The revaluation surplus is the result of the revaluation of land recognized by Film Company on December 31, 2020. Additionally, depreciation is provided by Film Company on the diminishing balance method whereas Czar Company uses the straight-line. Had Film Company used the straight line, the accumulated depreciation would be increased by P200,000. The tax rate is 30%. Required: 1. Prepare journal entries for the current year to recognize the transactions relating to the investment in associate. 2. Determine the carrying amount of the investment in associate on December 31, 2020