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FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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9. 'Joe Co. owns 25% of the outstanding ordinary shares of
Monkey Co. Monkey has outstanding noncumulative
preference shares with aggregate par value of P5,000,000 and
fixed dividend rate of 5%, none of which is held by Joe.
Monkey reported P2,800,000 profit for the year and declared
dividends of PS00,000 to preference shareholders and P900,000
to ordinary shareholders. How much investment income
should Joe Co. recognize for the year?
235 000
C 637,500
d. 1,050,000
F00 .000
Transcribed Image Text:9. 'Joe Co. owns 25% of the outstanding ordinary shares of Monkey Co. Monkey has outstanding noncumulative preference shares with aggregate par value of P5,000,000 and fixed dividend rate of 5%, none of which is held by Joe. Monkey reported P2,800,000 profit for the year and declared dividends of PS00,000 to preference shareholders and P900,000 to ordinary shareholders. How much investment income should Joe Co. recognize for the year? 235 000 C 637,500 d. 1,050,000 F00 .000
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