49 On May 1, 20x1, Sun Co. acquires additional 12,000 shares of Day Co. at P90 per share, the fair value on this date. The acquisition results in Sun Co. obtaining significant influence over Day Co. Day Co.'s total outstanding shares remain at 100,000. Day Co. reports 20x1 profit of P3,300,000 (earned eveniy during the year) and declares and pays P600,000 cash dividends at year-end. Day Co.'s shares are quoted at P92 per share on Dec. 31, 20x1. How much are reported in Sun Co.'s Dec. 31, 20x1 financial statements for the following? Share in profit of associate a. 660,000 b. 660,000 Investment in associate 1,620,000 1,840,000 C. 528,000 d. 440,000 2,208,000 2,120,000

49 On May 1, 20x1, Sun Co. acquires additional 12,000 shares of Day Co. at P90 per share, the fair value on this date. The acquisition results in Sun Co. obtaining significant influence over Day Co. Day Co.'s total outstanding shares remain at 100,000. Day Co. reports 20x1 profit of P3,300,000 (earned eveniy during the year) and declares and pays P600,000 cash dividends at year-end. Day Co.'s shares are quoted at P92 per share on Dec. 31, 20x1. How much are reported in Sun Co.'s Dec. 31, 20x1 financial statements for the following? Share in profit of associate a. 660,000 b. 660,000 Investment in associate 1,620,000 1,840,000 C. 528,000 d. 440,000 2,208,000 2,120,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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