Gina Company reported income before tax of P3,500,000 for 2020 which included the following amounts: Equity in earnings of Perly Company - 40% 1,200,000 interest Dividend received from Perly Company 250,000 Adjustment of profit of prior year for artithmetical (1,500,000) error in depreciation Gain on sale of equity investment at FVOCI 500,000 Required: What amount should be reported as income before tax?
Gina Company reported income before tax of P3,500,000 for 2020 which included the following amounts: Equity in earnings of Perly Company - 40% 1,200,000 interest Dividend received from Perly Company 250,000 Adjustment of profit of prior year for artithmetical (1,500,000) error in depreciation Gain on sale of equity investment at FVOCI 500,000 Required: What amount should be reported as income before tax?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Gina Company reported income before tax of P3,500,000 for 2020 which included the following amounts:
Equity in earnings of Perly Company - 40%
1,200,000
interest
Dividend received from Perly Company
250,000
Adjustment of profit of prior year for artithmetical
(1,500,000)
error in depreciation
Gain on sale of equity investment at FVOCI
500,000
Required:
What amount should be reported as income before tax?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe8410500-79be-44e8-b4eb-fb69ca50e31e%2F2a930c6c-95f1-4a75-95f9-51ea5130750d%2F4ga4cht_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Gina Company reported income before tax of P3,500,000 for 2020 which included the following amounts:
Equity in earnings of Perly Company - 40%
1,200,000
interest
Dividend received from Perly Company
250,000
Adjustment of profit of prior year for artithmetical
(1,500,000)
error in depreciation
Gain on sale of equity investment at FVOCI
500,000
Required:
What amount should be reported as income before tax?
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