Inconsiderate Company acquired 100,000 ordinary shares of Channel Company and 300,000 ordinary shares of Painful Company. Both Channel Company and Painful Company had 1,000,000 ordinary shares outstanding. Channel Company reported net income of P4,500,000 and paid dividends of P3,000,000 during the current year. Painful Company reported net income of P 4,000,00 and paid dividends of P1,000,000 during the current year. What total amount of income from the investments should be reported by the investor for the current year?
Inconsiderate Company acquired 100,000 ordinary shares of Channel Company and 300,000 ordinary shares of Painful Company. Both Channel Company and Painful Company had 1,000,000 ordinary shares outstanding. Channel Company reported net income of P4,500,000 and paid dividends of P3,000,000 during the current year. Painful Company reported net income of P 4,000,00 and paid dividends of P1,000,000 during the current year. What total amount of income from the investments should be reported by the investor for the current year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Inconsiderate Company acquired 100,000 ordinary shares of Channel Company and 300,000 ordinary shares of Painful Company. Both Channel Company and Painful Company had 1,000,000 ordinary shares outstanding. Channel Company reported net income of P4,500,000 and paid dividends of P3,000,000 during the current year. Painful Company reported net income of P 4,000,00 and paid dividends of P1,000,000 during the current year.
What total amount of income from the investments should be reported by the investor for the current year?
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