18. On January 2, 20x5 Felix paid P4,500,000 cash for a 80% interest in Rivera at a price of P150,000 less than the underlying book value of net assets. The excess amount was allocated to overvalued equipment with three year remaining useful life. The net income and dividend paid of Felix and Rivera from their own operation for 20x5 are as follows: Felix Rivera Net Income 2,000,000 500,000 Dividend 500,000 100,000 What is the amount of investment account under equity method on December 31, 20x5? 4,780,000 4,500,000 4,820,000 4,860,000

18. On January 2, 20x5 Felix paid P4,500,000 cash for a 80% interest in Rivera at a price of P150,000 less than the underlying book value of net assets. The excess amount was allocated to overvalued equipment with three year remaining useful life. The net income and dividend paid of Felix and Rivera from their own operation for 20x5 are as follows: Felix Rivera Net Income 2,000,000 500,000 Dividend 500,000 100,000 What is the amount of investment account under equity method on December 31, 20x5? 4,780,000 4,500,000 4,820,000 4,860,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 11MCQ

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