AB Corp had a net profit of CU400,000,000 and paid a dividend of CU200,000,000 during 19X7. AB Corp's shareholder equity as of December 31, 19X6 and December 31, 19X7 is as follows: 31 Desember 19x6 31 Desember 19x7 10% cumulative preference shares nominal Rp100,000 Rp300.000.000 300.000.000 Ordinary shares nominal Rp1,000 1.000.000.000 1.000.000.000 Additional paid-in capital 2.200.000.000 2.200.000.000 Retained earning 500.000.000 700.000.000 Shareholders' Equity 4.000.000.000 4.200.000.000 On January 2, 19X7, XY Corp purchases 400,000 shares of AB Corp common stock for CU4,000 per share and also pays CU50,000 in direct costs to acquire the investment. Required to determine (1) XY Corp's income from AB Corp in 19X7 and (2) the balance in the investment account with PT Somar as of December 31, 19X7.
AB Corp had a net profit of CU400,000,000 and paid a dividend of CU200,000,000 during 19X7. AB Corp's shareholder equity as of December 31, 19X6 and December 31, 19X7 is as follows:
|
|
31 Desember 19x6 |
31 Desember 19x7 |
|
10% cumulative |
Rp300.000.000 |
300.000.000 |
|
Ordinary shares nominal Rp1,000 |
1.000.000.000 |
1.000.000.000 |
|
Additional paid-in capital |
2.200.000.000 |
2.200.000.000 |
|
|
500.000.000 |
700.000.000 |
|
Shareholders' Equity |
4.000.000.000 |
4.200.000.000 |
On January 2, 19X7, XY Corp purchases 400,000 shares of AB Corp common stock for CU4,000 per share and also pays CU50,000 in direct costs to acquire the investment.
Required to determine (1) XY Corp's income from AB Corp in 19X7 and (2) the balance in the investment account with PT Somar as of December 31, 19X7.
Step by step
Solved in 2 steps with 1 images
