At the beginning of 2022, CPA Company purchased 20% of ACCA Corp’s ordinary shares outstanding for P3,000,000. Transaction cost incurred is 10% of the purchase price of the shares. at the data of acquisition, the carrying amount of the identifiable net assets were equal to their fair values. During 2022, the investee reported net income of 3,500,000 and paid cash dividend of P2,000,000. In 2023, Oriental reported loss of P500,000 and issued 10% stock dividends a. Investment Income for 2022 b. Carrying Amount of the investment in Associate on December 31, 2022 c. Investment Loss in 2023?

At the beginning of 2022, CPA Company purchased 20% of ACCA Corp’s ordinary shares outstanding for P3,000,000. Transaction cost incurred is 10% of the purchase price of the shares. at the data of acquisition, the carrying amount of the identifiable net assets were equal to their fair values. During 2022, the investee reported net income of 3,500,000 and paid cash dividend of P2,000,000. In 2023, Oriental reported loss of P500,000 and issued 10% stock dividends a. Investment Income for 2022 b. Carrying Amount of the investment in Associate on December 31, 2022 c. Investment Loss in 2023?

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 14RE

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