On April 30, 2020, Wings Company purchased for cash 18,000 of the 60,000 voting shares of Chicken Company for P650,000. The amount exceeded the underlying equity acquired in the net assets of Chicken Company by P150,000. The excess is attributable to undervaluation of Chicken Company’s land and equipment by P250,000 and P100,000, respectively. On April 30, 2020, the equipment had a remaining useful life of 5 years. The remaining excess was attributable to goodwill. During the year 2020, Chicken Company reported profit of P600,000, of which P120,000 was earned during January through April. Chicken Company declared and distributed a dividend of P4.00 per share on June 30, 2020. Market price of Chicken Company shares on December 31, 2020, is P40 per share. what is the carrying amount of the investment in associates on December 31, 2020? (provide solution please).
On April 30, 2020, Wings Company purchased for cash 18,000 of the 60,000 voting shares of Chicken Company for P650,000. The amount exceeded the underlying equity acquired in the net assets of Chicken Company by P150,000. The excess is attributable to undervaluation of Chicken Company’s land and equipment by P250,000 and P100,000, respectively. On April 30, 2020, the equipment had a remaining useful life of 5 years. The remaining excess was attributable to
what is the carrying amount of the investment in associates on December 31, 2020? (provide solution please).
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