On Jan. 1, 2020, ABC bought 250,000 shares of XYZ Corporation for P8,000,000. All 1,000,000 P20-par shares of XYZ were issued and outstanding. The net assets were valued at P32,000,000 but they were carried in the accounting books at P30,000,000. The difference is attributable to an equipment that has a useful life of 4 years. Details relating to XYZ for the years 2020 and 2021 are as follows: (the table is shown in the image uploaded.) What is the balance of the Investment in Associate as of Dec. 31, 2021?
On Jan. 1, 2020, ABC bought 250,000 shares of XYZ Corporation for P8,000,000. All 1,000,000 P20-par shares of XYZ were issued and outstanding. The net assets were valued at P32,000,000 but they were carried in the accounting books at P30,000,000. The difference is attributable to an equipment that has a useful life of 4 years. Details relating to XYZ for the years 2020 and 2021 are as follows: (the table is shown in the image uploaded.) What is the balance of the Investment in Associate as of Dec. 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On Jan. 1, 2020, ABC bought 250,000 shares of XYZ Corporation for P8,000,000. All 1,000,000 P20-par shares of XYZ were issued and outstanding. The net assets were valued at P32,000,000 but they were carried in the accounting books at P30,000,000. The difference is attributable to an equipment that has a useful life of 4 years. Details relating to XYZ for the years 2020 and 2021 are as follows:
(the table is shown in the image uploaded.)
What is the balance of the Investment in Associate as of Dec. 31, 2021?
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