At the beginning of current year, Bing Company purchased 30,000 shares of Latt Company’s 200,000 outstanding ordinary shares for P 6,000,000. On that date, the carrying amount of the acquired shares on Latt’s books was P 4,000,000.Bing attributed the excess of cost over carrying amount to patent. The patent has a remaining useful life of 10 years. During the current year, Bing’s officers gained a majority on Latt’s board of directors. Latt Company reported earnings of P 5,000,000 for the current year and declared and paid dividend of P 3,000,000 at year-end.What is the carrying amount of the investment in associate at year-end? * a. 6,000,000 b. 6,100,000 c. 6,300,000 d. 6,750,000
At the beginning of current year, Bing Company purchased 30,000 shares of Latt Company’s 200,000 outstanding ordinary shares for P 6,000,000. On that date, the carrying amount of the acquired shares on Latt’s books was P 4,000,000.Bing attributed the excess of cost over carrying amount to patent. The patent has a remaining useful life of 10 years. During the current year, Bing’s officers gained a majority on Latt’s board of directors. Latt Company reported earnings of P 5,000,000 for the current year and declared and paid dividend of P 3,000,000 at year-end.What is the carrying amount of the investment in associate at year-end? *
a. 6,000,000
b. 6,100,000
c. 6,300,000
d. 6,750,000
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