At the beginning of current year, Disgust Company purchased 30,000 shares of an investee's 200,000 outstanding ordinary shares for P6,000,000. On that date, the carrying amount of the quired shares was P4,000,000. The entity attributed the excess of cost over carrying amount to patent with remaining useful life of 10 years. During the year, Disgust Company's officers gained a majority investee's board of directors. The iavestee reported earnings of P5,000,000 for the year and paid dividend of P3,000,000 at year-end. Required: Pronare iournal entriee to wonn 11
At the beginning of current year, Disgust Company purchased 30,000 shares of an investee's 200,000 outstanding ordinary shares for P6,000,000. On that date, the carrying amount of the quired shares was P4,000,000. The entity attributed the excess of cost over carrying amount to patent with remaining useful life of 10 years. During the year, Disgust Company's officers gained a majority investee's board of directors. The iavestee reported earnings of P5,000,000 for the year and paid dividend of P3,000,000 at year-end. Required: Pronare iournal entriee to wonn 11
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
How much is the investment income for the current year?
Transcribed Image Text:acquired shares was P4,000,000.
earnings of P5,000,000 for the year and paid dividend of
on the investee's board of directors. The iavestee reported
30,000 shares of an investee's 200,000 outstanding ordinary
At the beginning of current year, Disgust Company purchased
shares for P6,000,000. On that date, the carrying amount of the
The entity attributed the excess of cost over carrying amount
to patent with remaining useful life of 10 years.
quired shares was P4,000,000.
ontity attributed the excess of cost over carrying amount
years.
year, Disgust Company's officers gained a majority
During the
Duhe investee's board of directors. The iavestee reported
P3,000,000 at year-end.
Required:
Prenare iournal entries to wnd
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