January 1, 20x1, Entity A, a public entity, and Entity B, a public entity, incorporated C, which has its fiscal and operational autonomy. The contractual agreement of the incorporating entities provided that the decisions on relevant activities of Entity C will require the unanimous consent of both entities. Entity A and Entity B will have the rights to the net assets of Entity C. Entity A and Entity B invested P2,000,000 and P3,000,000 respectively, equivalent to 40:60 capital interest of Entity C. the financial statement of Entity C provided the following data for its two-year operation: 20x1 20x2 Net income (loss) 450,000 (P4,500,000) Dividends declared 225,000 REQUIRED: Compute the balance of investment in Entity C to be reported by: 9. Entity A on December 31, 20x2 10. Entity B on December 31, 20x2
January 1, 20x1, Entity A, a public entity, and Entity B, a public entity, incorporated C, which has its fiscal and operational autonomy. The contractual agreement of the incorporating entities provided that the decisions on relevant activities of Entity C will require the unanimous consent of both entities. Entity A and Entity B will have the rights to the net assets of Entity C. Entity A and Entity B invested P2,000,000 and P3,000,000 respectively, equivalent to 40:60 capital interest of Entity C. the financial statement of Entity C provided the following data for its two-year operation: 20x1 20x2 Net income (loss) 450,000 (P4,500,000) Dividends declared 225,000 REQUIRED: Compute the balance of investment in Entity C to be reported by: 9. Entity A on December 31, 20x2 10. Entity B on December 31, 20x2
Chapter13: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 48P
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Question
![On January 1, 20x1, Entity A, a public entity, and Entity B, a public entity, incorporated C, which has its fiscal
and operational autonomy. The contractual agreement of the incorporating entities provided that the decisions
on relevant activities of Entity C will require the unanimous consent of both entities. Entity A and Entity B will
have the rights to the net assets of Entity C.
Entity A and Entity B invested P2,000,000 and P3,000,000 respectively, equivalent to 40:60 capital interest of
Entity C. the financial statement of Entity C provided the following data for its two-year operation:
Dividends
declared
225,000
Net income
(loss)
450,000
(P4,500,000)
20x1
20x2
REQUIRED: Compute the balance of investment in Entity C to be reported by:
9. Entity A on December 31, 20x2
10. Entity B on December 31, 20x2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9e8348b-df65-41f5-9191-72f18ddd695e%2F0fca31a3-0ae3-4f65-898e-033c337b4985%2F2hh6t18o_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 20x1, Entity A, a public entity, and Entity B, a public entity, incorporated C, which has its fiscal
and operational autonomy. The contractual agreement of the incorporating entities provided that the decisions
on relevant activities of Entity C will require the unanimous consent of both entities. Entity A and Entity B will
have the rights to the net assets of Entity C.
Entity A and Entity B invested P2,000,000 and P3,000,000 respectively, equivalent to 40:60 capital interest of
Entity C. the financial statement of Entity C provided the following data for its two-year operation:
Dividends
declared
225,000
Net income
(loss)
450,000
(P4,500,000)
20x1
20x2
REQUIRED: Compute the balance of investment in Entity C to be reported by:
9. Entity A on December 31, 20x2
10. Entity B on December 31, 20x2
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