Investor company acquired a 40% interest in an associate for P3,000,000. In the financial period immediately following the date on which it became an associate, the investee took the following action:revalued assets up to fair value byP500,000generated profits of P1,600,000declared a dividend of P300,000The balance in the investor's account of 'Sharesin associate', after equity accounting has beenapplied, is? 13. Investor company acquired a 40% interest inan associate for P3,000,000. In the financialperiod immediately following the date on which itbecame an associate, the investee took thefollowing action:• revalued assets up to fair value byP500,000generated profits of P1,600,000• declared a dividend of P300,000The balance in the investor's account of 'Sharesin associate', after equity accounting has beenapplied, isa. P3,720,000b. P3,000,000c. P3,840,000d. P3,960,000

Solution: Balance in investor's account of shares in associates = Cost of investment + share in…

Answered: Investor company acquired a 40%…

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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Investor company acquired a 40% interest in an associate for P3,000,000. In the financial period immediately following the date on which it became an associate, the investee took the following action: revalued assets up to fair value by P500,000 generated profits of P1,600,000 declared a dividend of P300,000 The balance in the investor's account of 'Shares in associate', after equity accounting has been applied, is?

13. Investor company acquired a 40% interest in
an associate for P3,000,000. In the financial
period immediately following the date on which it
became an associate, the investee took the
following action:
• revalued assets up to fair value by
P500,000
generated profits of P1,600,000
• declared a dividend of P300,000
The balance in the investor's account of 'Shares
in associate', after equity accounting has been
applied, is
a. P3,720,000
b. P3,000,000
c. P3,840,000
d. P3,960,000

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