2. On January 1, 20X0, Station Inc. invested P2,000,000 cash in a joint venture for 50% interest. For the yearsended December 31, 20X0, 20X1, and 20X2, the joint venture reported the following data:Net Income (Net Loss)P1,000,000(6,000,000)7,000,000Dividend DistributionP300,000Year20X020X120X2500,000Required: Determine the following:a. Share in net loss or investment to be reported by Station Inc. for the year ended December 31, 20X1.b. The book value of Investment in Joint venture to be reported by Station Inc. as of December 31, 20X2.

2. On January 1, 20X0, Station Inc. invested P2,000,000 cash in a joint venture for 50% interest. For the years ended December 31, 20X0, 20X1, and 20X2, the joint venture reported the following data: Year 20X0 20X1 20X2 Net Income (Net Loss) P1,000,000 (6,000,000) 7,000,000 Dividend Distribution P300,000 500,000 Required: Determine the following: a. Share in net loss or investment to be reported by Station Inc. for the year ended December 31, 20X1. b. The book value of Investment in Joint venture to be reported by Station Inc. as of December 31, 20X2.

2. On January 1, 20X0, Station Inc. invested P2,000,000 cash in a joint venture for 50% interest. For the years ended December 31, 20X0, 20X1, and 20X2, the joint venture reported the following data: Year 20X0 20X1 20X2 Net Income (Net Loss) P1,000,000 (6,000,000) 7,000,000 Dividend Distribution P300,000 500,000 Required: Determine the following: a. Share in net loss or investment to be reported by Station Inc. for the year ended December 31, 20X1. b. The book value of Investment in Joint venture to be reported by Station Inc. as of December 31, 20X2.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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