ABC Company acquired 30,000 shares out of XYZ Company's 100,000 outstanding share on January 1,2020 for P 3,000,000 when the net assets of XYZ was P 10,000,000. This acquisition gave ABC significant influence over XYZ Company. XYZ earned P 1,000,000 net loss and paid dividends of P 300,000 in 2020 On December 31,2020, market value of each XYZ shares is P 120 On October 20,2021, XYZ declared a 2 for 1 share split. For the year 2021, XYZ reported net income of P2,000,000 and declared and paid P5 cash dividend. On December 31,2021, market value of each XYZ shares is P 125. Answer the following: 1. What total amount must be presented in the profit or loss section of ABC Company for the year 2020 related to his investment in XYZ Company? 2. Assuming ABC Company sold all his XYZ investment on December 31, 2021 for P 125 per share, what total amount must be presented in the profit or loss section of ABC Company for the year 2021 related to his investment in XYZ Company? 3. What total amount must be presented in the profit or loss section of ABC Company for the year 2021 related to his investment in XYZ Company? 4.Assuming ABC Company sold all his XYZ investment on December 31, 2021 for P 125 per share, how much is the gain or loss on sale of the investment?

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.