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Flicker, Inc. acquired 30% of  West Company's voting shares for P 200,000 on January 2, 20x2. Flicker's 30% interest in West gave Flicker the ability to exercise significant influence over West's operating and financial policies. During 20x2, West earned P 80,000 and paid dividends of P 50,000. West reported earnings of P 100,000 for the six months ended June 30, 20x3 and P 200,000 for the year ended December 31, 20x3.    What amount should Flicker include in its 20x2 statement of financial performance as a result of the investment? a. 80,000 b. 15,000 c. 24,000 d. 50,000

Flicker, Inc. acquired 30% of  West Company's voting shares for P 200,000 on January 2, 20x2. Flicker's 30% interest in West gave Flicker the ability to exercise significant influence over West's operating and financial policies. During 20x2, West earned P 80,000 and paid dividends of P 50,000. West reported earnings of P 100,000 for the six months ended June 30, 20x3 and P 200,000 for the year ended December 31, 20x3.    What amount should Flicker include in its 20x2 statement of financial performance as a result of the investment? a. 80,000 b. 15,000 c. 24,000 d. 50,000

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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Flicker, Inc. acquired 30% of  West Company's voting shares for P 200,000 on January 2, 20x2. Flicker's 30% interest in West gave Flicker the ability to exercise significant influence over West's operating and financial policies. During 20x2, West earned P 80,000 and paid dividends of P 50,000. West reported earnings of P 100,000 for the six months ended June 30, 20x3 and P 200,000 for the year ended December 31, 20x3. 

 

What amount should Flicker include in its 20x2 statement of financial performance as a result of the investment?

a. 80,000

b. 15,000

c. 24,000

d. 50,000

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