In the December 31, 2020, statement of financial position, what is the carrying amount of the investment in equity securities? On January 2, 2020, Megan, INC. acquired a 15% interest in Kiyosaki Corp. by paying P8, 000, 000 for 100,000 ordinary shares. On this date, the net assets of Kiyosaki Corp. totaled P40, 000, 000. The fair values of Kiyosaki Corp.'s identifiable assets and liabilities were equal to their book values. Megan did not have the ability to exercise significant influence over the operating and financial policies of Kiyosaki. Megan received dividends of P1.40 per share from Kiyosaki on October 1, 2020. Kiyosaki reported net income of P5, 000, 000 for the year ended December 31, 2020. Megan classified the investment as at fair value through other comprehensive income. Market price for the 100,000 shares was P9, 000, 000 on December 31, 2020. Megan paid P30, 000, 000 on January 1, 2021, for 300,000 additional Kiyosaki ordinary shares, which represents a 25% interest in Kiyosaki. The fair value of Kiyosaki Corp.'s identifiable assets, net of liabilities, was equal to their book values of P92, 000, 000. As a result of this additional acquisition, Megan has the ability to exercise significant influence over the operating and financial policies of Kiyosaki. Megan received a dividend of P2.70 per share on October 5, 2021. Kiyosaki reported net income of P6, 000, 000 for the year ended December 31, 2021. The investment's fair value on December 31, 2021, is P45, 000, 000. a. P9,000,000 b. P8,610,000 c. P8,000,000 d. P8,750,000
In the December 31, 2020,
On January 2, 2020, Megan, INC. acquired a 15% interest in Kiyosaki Corp. by paying P8, 000, 000 for 100,000 ordinary shares. On this date, the net assets of Kiyosaki Corp. totaled P40, 000, 000. The fair values of Kiyosaki Corp.'s identifiable assets and liabilities were equal to their book values. Megan did not have the ability to exercise significant influence over the operating and financial policies of Kiyosaki. Megan received dividends of P1.40 per share from Kiyosaki on October 1, 2020. Kiyosaki reported net income of P5, 000, 000 for the year ended December 31, 2020. Megan classified the investment as at fair value through other comprehensive income. Market price for the 100,000 shares was P9, 000, 000 on December 31, 2020.
Megan paid P30, 000, 000 on January 1, 2021, for 300,000 additional Kiyosaki ordinary shares, which represents a 25% interest in Kiyosaki. The fair value of Kiyosaki Corp.'s identifiable assets, net of liabilities, was equal to their book values of P92, 000, 000. As a result of this additional acquisition, Megan has the ability to exercise significant influence over the operating and financial policies of Kiyosaki. Megan received a dividend of P2.70 per share on October 5, 2021. Kiyosaki reported net income of P6, 000, 000 for the year ended December 31, 2021. The investment's fair value on December 31, 2021, is P45, 000, 000.
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