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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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On July 1, 2021, Diamante Co. paid P1,000,000 for 100,000 ordinary shares (40%) of Ashes Co. At that date, Ashes' net assets totaled P 2,500,000 and the fair values of all Ashes identifiable assets and liabilities were equal to their carrying amount. Ashes reported net income of P500,000 for 2021, of which P300,000 was for the 6 months ended December 31, 2021. Ashes paid cash dividends of P 250,000 on September 30, 2021. What amount of income should Diamante report from the investment in Ashe Co.? Start Select the correct response: essments P 120,000 erences P 100,000 Fessors P 80,000 dents P 200,000 abus ( Previous Continue > purses
Transcribed Image Text:On July 1, 2021, Diamante Co. paid P1,000,000 for 100,000 ordinary shares (40%) of Ashes Co. At that date, Ashes' net assets totaled P 2,500,000 and the fair values of all Ashes identifiable assets and liabilities were equal to their carrying amount. Ashes reported net income of P500,000 for 2021, of which P300,000 was for the 6 months ended December 31, 2021. Ashes paid cash dividends of P 250,000 on September 30, 2021. What amount of income should Diamante report from the investment in Ashe Co.? Start Select the correct response: essments P 120,000 erences P 100,000 Fessors P 80,000 dents P 200,000 abus ( Previous Continue > purses
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