with solutions please

Chapter 4 - Investments in Equity Securities MC32 On January 1, 2022, IBM Company paid P1,200,000 for 40,000 ordinary shares of Apple Corp., representing a 25% investment in the net assets of Apple. IBM can exercise significant influence over Apple. IBM received a dividend of P3 per share from Apple in 2022. The reported profit of Apple for the year ended December 31, 2022 was P640,000. The balance of IBM's Investment in Apple on December 31, 2022 should be a. P1,200,000 b . P1,240,000 C. P1,360,000 P1,480,000 MC33 On January 1, 2022, Inkjet Company acquired 40% of GIC Company by purchasing 8,000 shares for P1,440,000. On the date of acquisition, Inkjet calculated that its share of the excess of the fair value over the book value of GIC's depreciable assets was P150,000 and that the purchased goodwill was P120,000. At the end of 2022, GIC reported a profit of P450,000 and paid dividends of P7.00 per share. Inkjet depreciates its depreciable assets over a 12-year remaining life. What is the amount of income Inkjet Company would report from its investment in GIC for the year ended December 31, 2022? a. P172,600 b . P167,500 C. P105,500 d. P 56,000