Fact pattern for the next two questions:Lim Co. sells one-fourth of its 20% investment in Teg Co.'sordinary shares for P500,000. Information on the date of sale is as528,000C.b.follows:d. 440,000Investment in Teg's shares (equity method)Cumulative share in Teg's exchangedifferences on translation of a foreign operation14. The Michi C31 Decembefor P1,020,0Decemberfinancial pc1,200,000100,000 Cr11.. What would be the effect of the sale transaction on Lim Co.'sprofit or loss if after the sale: (1) Lim Co. loses significantinfluence over Teg Co.; and (2) Lim Co. retains significantinfluence over Teg Co.?relation toa. (1) 225,000; (2) 300,000b. (1) 300,000; (2) 275,000c. (1) 300,000; (2) 225,000d. (1) 275,000; (2) 300,000adjustmentfinancial peamings?Non-ca

Company is an artificial person having separate entity from its members and having common seal. A…

Fact pattern for the next two questions: Lim Co. sells one-fourth of its 20% investment in Teg Co.'s ordinary shares for P500,000. Information on the date of sale is as follows: 1,200,000 Investment in Teg's shares (equity method) • Cumulative share in Teg's exchange differences on translation of a foreign operation 100,000 Cr 11.. What would be the effect of the sale transaction on Lim Co.'s profit or loss if after the sale: (1) Lim Co. loses significant influence over Teg Co.; and (2) Lim Co. retains significant influence over Teg Co.? a. (1) 225,000; (2) 300,000 b. (1) 300,000; (2) 275,000 c. (1) 300,000; (2) 225,000 d. (1) 275,000; (2) 300,000

Fact pattern for the next two questions: Lim Co. sells one-fourth of its 20% investment in Teg Co.'s ordinary shares for P500,000. Information on the date of sale is as follows: 1,200,000 Investment in Teg's shares (equity method) • Cumulative share in Teg's exchange differences on translation of a foreign operation 100,000 Cr 11.. What would be the effect of the sale transaction on Lim Co.'s profit or loss if after the sale: (1) Lim Co. loses significant influence over Teg Co.; and (2) Lim Co. retains significant influence over Teg Co.? a. (1) 225,000; (2) 300,000 b. (1) 300,000; (2) 275,000 c. (1) 300,000; (2) 225,000 d. (1) 275,000; (2) 300,000

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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