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At what amount is the investment reported on the statement of financial position under each of these methods at December 31, 2023? What is the effect on net income reported in 2023 under each of these methods?

At what amount is the investment reported on the statement of financial position under each of these methods at December 31, 2023? What is the effect on net income reported in 2023 under each of these methods?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Oriole Group acquired 20% of the outstanding ordinary shares of Cho Ltd. on December 31, 2022. The purchase price was ¥99.880,000 for 45,400 shares. Cho declared and paid an ¥80 per share cash dividend on June 30 and on December 31, 2023. Cho reported net income of ¥70,800,000 for 2023. The fair value of Cho's shares was ¥2.400 per share at December 31, 2023. At what amount is the investment reported on the statement of financial position under each of these methods at December 31, 2023? What is the effect on net income reported in 2023 under each of these methods? Investment amount (statement of financial position) Dividend revenue (income statement) Unrealized holding gain (income statement) Revenue from investment (income statement) Fair Value Method Equity Method
Transcribed Image Text:Oriole Group acquired 20% of the outstanding ordinary shares of Cho Ltd. on December 31, 2022. The purchase price was ¥99.880,000 for 45,400 shares. Cho declared and paid an ¥80 per share cash dividend on June 30 and on December 31, 2023. Cho reported net income of ¥70,800,000 for 2023. The fair value of Cho's shares was ¥2.400 per share at December 31, 2023. At what amount is the investment reported on the statement of financial position under each of these methods at December 31, 2023? What is the effect on net income reported in 2023 under each of these methods? Investment amount (statement of financial position) Dividend revenue (income statement) Unrealized holding gain (income statement) Revenue from investment (income statement) Fair Value Method Equity Method
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