At the beginning of the current year, WWW Company purchased 10% of RRR Company's outstanding ordinary shares for P4,000,000. WWW Company is the largest single shareholder in RRR and WWW's officers are a majority of RRR's board of directors. The investee reported net income of P5,000,000 for the current year and paid cash dividend of P1,500,000. What amount should be reported as investment in RRR Company at year-end?
At the beginning of the current year, WWW Company purchased 10% of RRR Company's outstanding ordinary shares for P4,000,000. WWW Company is the largest single shareholder in RRR and WWW's officers are a majority of RRR's board of directors. The investee reported net income of P5,000,000 for the current year and paid cash dividend of P1,500,000. What amount should be reported as investment in RRR Company at year-end?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the beginning of the current year, WWW Company purchased 10% of RRR Company's outstanding ordinary shares for P4,000,000. WWW Company is the largest single shareholder in RRR and WWW's officers are a majority of RRR's board of directors. The investee reported net income of P5,000,000 for the current year and paid cash dividend of P1,500,000. What amount should be reported as investment in RRR Company at year-end?
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