Kobe Company owns 50% of Lakers Company's cumulative preference shares and 30% of its ordinary shares. Lakers' shares outstanding at December 31, 2020 include P10,000,000 of 10% cumulative preference shares and P40,000,000 of ordinary shares. Lakers reported profit of P8,000,000 for the year ended December 31, 2020. Lakers declared and paid P1,500,000 preference share dividends during 2020. Lakers paid no preference share dividends during 2019. How much is the total amount to be recognized by Kobe Company in its 2020 profit or losse related to these investments? P2,850,000 P2.700.000 P2.450,000 P2,600,000
Kobe Company owns 50% of Lakers Company's cumulative preference shares and 30% of its ordinary shares. Lakers' shares outstanding at December 31, 2020 include P10,000,000 of 10% cumulative preference shares and P40,000,000 of ordinary shares. Lakers reported profit of P8,000,000 for the year ended December 31, 2020. Lakers declared and paid P1,500,000 preference share dividends during 2020. Lakers paid no preference share dividends during 2019. How much is the total amount to be recognized by Kobe Company in its 2020 profit or losse related to these investments? P2,850,000 P2.700.000 P2.450,000 P2,600,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Kobe Company owns 50% of Lakers Company's cumulative preference shares and 30% of its ordinary shares. Lakers' shares outstanding at December 31, 2020 include P10,000,000 of 10% cumulative preference shares and P40,000,000 of ordinary shares.
Lakers reported profit of P8,000,000 for the year ended December 31, 2020. Lakers declared and paid P1,500,000
How much is the total amount to be recognized by Kobe Company in its 2020
P2,850,000
P2.700.000
P2.450,000
P2,600,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education