Please show the proper solution in a good accounting form. On January 2, 2020, Hanz Corporation bought 30% of the outstandingordinary shares of Eve Corporation for P1,560,000 cash. Hanz accounts forthis investment by the equity method. At the date of acquisition of thestock, Eve's net assets had a book and fair value of P5,200,000. Eve's netincome for the year ended December 31, 2020 was P1,400,000. During2020, Eve declared and paid cash dividends of P200,000. On December31, 2020, how much should Hanz carry its investment in Eve?Your answer

According to IAS -28 Equity method is used for accounting of investment in subsidiaries and Joint…

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Business

Accounting

how much should Hanz carry its investment in Eve?

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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Please show the proper solution in a good accounting form.

On January 2, 2020, Hanz Corporation bought 30% of the outstanding
ordinary shares of Eve Corporation for P1,560,000 cash. Hanz accounts for
this investment by the equity method. At the date of acquisition of the
stock, Eve's net assets had a book and fair value of P5,200,000. Eve's net
income for the year ended December 31, 2020 was P1,400,000. During
2020, Eve declared and paid cash dividends of P200,000. On December
31, 2020, how much should Hanz carry its investment in Eve?
Your answer

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