BBB Company purchased 10% of TJ Company's 100,000 outstanding ordinary shares on January 1, 2019 for P500,000. On December 31, 2019, BBB Company purchased an additional 20,000 shares of TJ Company for P1,500,000. TJ Company had not issued any additional shares during 2019. The investee reported earnings of P3,000,000 for 2019. The fair value of the 10% interest is P900,000 on December 31, 2019. What is the carrying amount of the investment in association on December 31, 2019?

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A: Inter group company accounting deals with accounting of related entities such as subsidiaries, etc.

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A: 1.

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Q: What total amount of income should be recognized for 2019?

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A: The correct answer is given in the following steps for your reference

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A:

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.