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. 5. What amount should Chevy Company report as investment income for 2021

Q: 4. On January 1, 2019, Kind Company has 10,000 ordinary and 5,000 preference shares outstanding. On…

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Q: (Use the PFRS for SMEs) On December 31, 2021, Taher Co. acquired 30% of the ordinary shares that…

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Q: ABC Company had the following capital structure during 2020 and 2021: Preference share capital, P10…

A: Answer) Calculation of Basic Earnings per Share Basic earnings per share = Earnings available for…

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Q: Pacquired an 80% of S Company at a cost of $200,000 on January 1, 2020. S reported net income in…

A: P's share in net income of S ( For year 2021 ) = $40,000 x 80% = $32,000

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A: SOLUTION COST OF INVESTMENT  MEANS CONTRACT PURCHASE PRICE OF INVESTMENTS ACQUIRED , ACQUISITION…

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A:

Q: An investor company purchased 180,000 shares of common stock of the investee company on January 2,…

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A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

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Q: Gangnamn Inc owns 50% of Ps

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A:

Q: A. On 1 July 2020, Alba Bbd. acquired 30 per cent of the ordinary shares that carry voting rights at…

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Q: equity method to account for this investment

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A: The correct answer for the above mentioned question is given in the following steps for your…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is