Care Company received dividends from its share investments during the year ended December 31, 2011 as follows: • A stock dividend of P4,000 shares from Part Company on July 31, 2011 when the market price of Part's share was P20. Care owns less than 1% of Part's share capital. • A cash dividend of P150,000 from Shark Company in which Day owns a 25% interest. Majority of Shark’s director are also directors of Care. What amount of dividend revenue should Care report in its 2011 income statement? a. 230,000 b. 150,000 c. 80,000 d. 0
Care Company received dividends from its share investments during the year ended December 31, 2011 as follows: • A stock dividend of P4,000 shares from Part Company on July 31, 2011 when the market price of Part's share was P20. Care owns less than 1% of Part's share capital. • A cash dividend of P150,000 from Shark Company in which Day owns a 25% interest. Majority of Shark’s director are also directors of Care. What amount of dividend revenue should Care report in its 2011 income statement? a. 230,000 b. 150,000 c. 80,000 d. 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Care Company received dividends from its share investments during the year ended December 31, 2011 as
follows:
• A stock dividend of P4,000 shares from Part Company on July 31, 2011 when the market price of Part's
share was P20. Care owns less than 1% of Part's share capital.
• A cash dividend of P150,000 from Shark Company in which Day owns a 25% interest. Majority of
Shark’s director are also directors of Care.
What amount of dividend revenue should Care report in its 2011 income statement?
a. 230,000
b. 150,000
c. 80,000
d. 0
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