ARIE Company acquired 30% of BARD Company’s voting share capital for P2,000,000 on January 1, 2017. Grat’s 30% interest in BARD gave ARIE the ability to exercise significant influence over BARD's operating and financial policies. During 2017, BARD earned P800,000 and paid cash dividends of P500,000. BARD reported earnings of P1,000,000 for the six months ended June 30, 2018 and P2,000,000 for the year ended December 31, 2018. On July 1, 2018, ARIE sold half of the investment in BARD or P1,500,000 cash. On such date, the investment is measured at fair value through other comprehensive income. The fair value of the retained investment is P1,600,000 on July 1, 2018 and P1,800,000 on December 31, 2018. In the December 31, 2017 statement of financial position, what is the carrying amount of the investment?
ARIE Company acquired 30% of BARD Company’s voting share capital for P2,000,000 on January 1, 2017. Grat’s 30% interest in BARD gave ARIE the ability to exercise significant influence over BARD's operating and financial policies. During 2017, BARD earned P800,000 and paid cash dividends of P500,000. BARD reported earnings of P1,000,000 for the six months ended June 30, 2018 and P2,000,000 for the year ended December 31, 2018. On July 1, 2018, ARIE sold half of the investment in BARD or P1,500,000 cash. On such date, the investment is measured at fair value through other comprehensive income. The fair value of the retained investment is P1,600,000 on July 1, 2018 and P1,800,000 on December 31, 2018.
In the December 31, 2017
Step by step
Solved in 2 steps with 2 images
