O. On July 1, 2020, Jude Company purchased 10,000 shares of Rigby Company ordinary shares for P510,000 plus broker's fees of P5,100. The shares represented 25% of the outstanding shares of Rigby and Jude has an ability to exercise significant influence over the financial and operating policies of Rigby. The acquisition cost reflected book value of the investee's net assets as of that date. Rigby Company reported profit of PS50,000 (evenly earned) for the year ended December 31, 2020. At December 31, 2020, Rigby declared and paid cash dividends of P320,000. At January 1, 2021, Jude Company sold one-half of the investment in Rigby for P275,000 less broker's fees of P2,750. Jude Company does not have the intention to dispose the remaining securities in the immediate future. For the year ended December 31, 2021, Rigby Company reported profit of P980,000 and declared and paid cash dividends of P150.000

O. On July 1, 2020, Jude Company purchased 10,000 shares of Rigby Company ordinary shares for P510,000 plus broker's fees of P5,100. The shares represented 25% of the outstanding shares of Rigby and Jude has an ability to exercise significant influence over the financial and operating policies of Rigby. The acquisition cost reflected book value of the investee's net assets as of that date. Rigby Company reported profit of PS50,000 (evenly earned) for the year ended December 31, 2020. At December 31, 2020, Rigby declared and paid cash dividends of P320,000. At January 1, 2021, Jude Company sold one-half of the investment in Rigby for P275,000 less broker's fees of P2,750. Jude Company does not have the intention to dispose the remaining securities in the immediate future. For the year ended December 31, 2021, Rigby Company reported profit of P980,000 and declared and paid cash dividends of P150.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 12 research laboratory which requires P5,000, 000 for original Determine the capitalized cost of construction; P100, 000 at the end of every year for the first 5 years and then P120, 000 each year thereafter f or operating expenses, and P500,000 every 6 years for replacement of equipment with interest at 12% per annum? OA6,441,350 O B.6,067,015 OC 6,632,445 8,573,650ס E, None of the above Question 12 of 50 A Moving to another question will save this response. acer PrtSc Pause Del Home Pg U F7 F8 F9 F10 F11 F12 F3 F4 F5 F6 SysRq Scr Lk Break Ins DIO Backspace 7 8.
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The cash flows associated with a project can be represented by the following decision tree (conditional probabilities are in parentheses): Year 0 Year 1 -$800 $400 (4) $212 56 $500 (6) Year 2 $300 (5) $500 (5) $400 (5) $600 (15) Year 3 $200 (5) $400 (5) $400 (5) $600 (.5) $300 (5) $500 (5) $500 (5) $700 (5) Given this data, determine the expected NPV for this project if the appropriate cost of capital is 12.36 percent.
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