n January 2, 2020. Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for P20.000.000. Tuao is the largest single shareholder in Abulug and this gives Tuao the power to participate in the financial and operating policy decisions of the Abulug but is not control or joint control over those policies. Abulug reported profit of P10,000,000 and paid dividend of P4,000,000. What should be the balance in Tuao's investment in Abulug Company at the end of 2020? A. 21,000,000 B. 20,000,000 C. 21,400,000 D. 20,600,000
n January 2, 2020. Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for P20.000.000. Tuao is the largest single shareholder in Abulug and this gives Tuao the power to participate in the financial and operating policy decisions of the Abulug but is not control or joint control over those policies. Abulug reported profit of P10,000,000 and paid dividend of P4,000,000. What should be the balance in Tuao's investment in Abulug Company at the end of 2020? A. 21,000,000 B. 20,000,000 C. 21,400,000 D. 20,600,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On January 2, 2020. Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for P20.000.000. Tuao is the largest single shareholder in Abulug and this gives Tuao the power to participate in the financial and operating policy decisions of the Abulug but is not control or joint control over those policies. Abulug reported profit of P10,000,000 and paid dividend of P4,000,000.
What should be the balance in Tuao's investment in Abulug Company at the end of 2020?
A. 21,000,000
B. 20,000,000
C. 21,400,000
D. 20,600,000
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