On April 30, 2021, Marie Company purchased for cash 18,000 of the 60,000 voting shares of Robbie Company P650,000. The amount exceeded the underlying equity acquired in the net assets of Robbie Company by P150,000 The excess is attributable to undervaluation of Robbie Company's land and equipment by P250,000 and P100,000 respectively. At April 30. 2021, the equipment had a remaining useful life of 5 years. The remaining excess w attributable to goodwill. During the year 2021, Robbie Company reported profit of P600,000, of which P120,000 was earned during Januar through April. Robbie Company declared and distributed a dividend of P4.00 per share on June 30, 2021. Market pric of Robbie Company shares at December 31, 2021 is P40 per share.

On April 30, 2021, Marie Company purchased for cash 18,000 of the 60,000 voting shares of Robbie Company P650,000. The amount exceeded the underlying equity acquired in the net assets of Robbie Company by P150,000 The excess is attributable to undervaluation of Robbie Company's land and equipment by P250,000 and P100,000 respectively. At April 30. 2021, the equipment had a remaining useful life of 5 years. The remaining excess w attributable to goodwill. During the year 2021, Robbie Company reported profit of P600,000, of which P120,000 was earned during Januar through April. Robbie Company declared and distributed a dividend of P4.00 per share on June 30, 2021. Market pric of Robbie Company shares at December 31, 2021 is P40 per share.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

43. What is the carrying amount of the investment in associates at December 31, 2021?

A. P708,500

B. P716,000

C. P718,000

D. P720,000

U. On April 30, 2021, Marie Company purchased for cash 18,000 of the 60,000 voting shares of Robbie Company for
P650,000. The amount exceeded the underlying equity acquired in the net assets of Robbie Company by P150,000.
The excess is attributable to undervaluation of Robbie Company's land and equipment by P250,000 and P100,000,
respectively. At April 30. 2021, the equipment had a remaining useful life of 5 years. The remaining excess was
attributable to goodwill.
During the year 2021, Robbie Company reported profit of P600,000, of which P120,000 was earned during January
through April. Robbie Company declared and distributed a dividend of P4.00 per share on June 30, 2021. Market price
of Robbie Company shares at December 31, 2021 is P40 per share.

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