6. David Company acquired 200,000 ordinary shares of Jonathan Company and 250,000 ordinary shares of Aaron Company. Aaron Company and Jonathan Company had 1,000,000 and 2,000,000 ordinary shares outstanding, respectively. Jonathan Company reported net income of P12,000,000 and paid dividends of P4,500,000 during the current year. On the other hand, the Aaron Company reported net income of P8,200,000 and paid dividends of P3,000,000 during the current year. How much is the dividend income to be reported for the current year? a. 300,000 450,000 C. 650,000 d. 1,200,000
6. David Company acquired 200,000 ordinary shares of Jonathan Company and 250,000 ordinary shares of Aaron Company. Aaron Company and Jonathan Company had 1,000,000 and 2,000,000 ordinary shares outstanding, respectively. Jonathan Company reported net income of P12,000,000 and paid dividends of P4,500,000 during the current year. On the other hand, the Aaron Company reported net income of P8,200,000 and paid dividends of P3,000,000 during the current year. How much is the dividend income to be reported for the current year? a. 300,000 450,000 C. 650,000 d. 1,200,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:6. David Company acquired 200,000 ordinary shares of Jonathan Company and 250,000 ordinary shares of
Aaron Company. Aaron Company and Jonathan Company had 1,000,000 and 2,000,000 ordinary shares
outstanding, respectively. Jonathan Company reported net income of P12,000,000 and paid dividends of
P4,500,000 during the current year. On the other hand, the Aaron Company reported net income of
P8,200,000 and paid dividends of P3,000,000 during the current year. How much is the dividend income
to be reported for the current year?
a.
300,000
b
450,000
c. 650,000
d.
1,200,000
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