Chevy Company owns 50% of another entity’s preference share capital and 40% of its ordinary share  capital. The investee’s share capital outstanding at December 31, 2021 include P5,000,000 of 10%  cumulative preference share capital and P10,000,000 of ordinary share capital. The investee reported  net income of P6,000,000 for 2021. No dividend was declared for both preference and ordinary share  in 2021. 6. Assume that the company is an SME and the company elected to use the fair value model, what  amount should Chevy Company report as investment income for 2021

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A:

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A: 1.

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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.