Grat Company acquired 30% of Suth Company's voting share capital for P2,000,000 on January 1, 2017. Grat's 30% interest in Suth gave Grat the ability to exercise significant influence over Suth's operating and financial policies. During2017, Suth earned P800,000 and paid cash dividends of P500,000. Suth reported earnings of P1,000,000 for the six months ended June 30, 2018 and P2,000,000 for the year ended December 31, 2018. On July 1, 2018, Grat sold half of the investment in Suth for P1,500,000 cash. On such date, the investment is measured at fair value through other comprehensive income. The fair value of the retained investment is P1,600,000 on July 1, 2018 and P1,800,000 on December 31, 2018. In the December 31, 2017 statement of financial position, what is the carrying amount of the investment? O 2,000,000 O 2,240,000 D 2,300,000 D 2,090,000

Grat Company acquired 30% of Suth Company's voting share capital for P2,000,000 on January 1, 2017. Grat's 30% interest in Suth gave Grat the ability to exercise significant influence over Suth's operating and financial policies. During2017, Suth earned P800,000 and paid cash dividends of P500,000. Suth reported earnings of P1,000,000 for the six months ended June 30, 2018 and P2,000,000 for the year ended December 31, 2018. On July 1, 2018, Grat sold half of the investment in Suth for P1,500,000 cash. On such date, the investment is measured at fair value through other comprehensive income. The fair value of the retained investment is P1,600,000 on July 1, 2018 and P1,800,000 on December 31, 2018. In the December 31, 2017 statement of financial position, what is the carrying amount of the investment? O 2,000,000 O 2,240,000 D 2,300,000 D 2,090,000

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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