net share in the profit of the associate would b
On July 1, 20X1, ABC acquired 25% of the outstanding ordinary shares of Yellow Corp at a total cost of P7,000,000. Net assets of Yellow was only P6,000,000. Yellow's
The carrying amount of the investment account at Dec 31, 20X1 would be:
7,000,000
7,397,500
7,412,500
8,087,500
On July 1, 20X1, ABC acquired 25% of the outstanding ordinary shares of Yellow Corp at a total cost of P7,000,000. Net assets of Yellow was only P6,000,000. Yellow's depreciable assets (10-year remaining life) has a fair value of P600,000 more than the book value. Yellow earned net profit of P5,400,000 evenly throughout the year. Yellow paid cash dividends of P1,050,000 at Dec 31, 20X1.
The net share in the profit of the associate would be:
660,000
675,000
690,000
1,350,000
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