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On January 1, 2002, Capitech Corporation acquired Logirun, Inc. as a long-term investment for ₱250,000 (a 30 percent ordinary share interest in Logirun). On that date, Logirun had net assets with a book value and fair value of ₱800,000. During 2002, Logirun reported profit of ₱90,000 and declared and paid cash dividends of ₱20,000. What is the maximum amount of income that Capitech should report from this investment for 2002? 6,000                                                 26,750           21,000                                                27,000

On January 1, 2002, Capitech Corporation acquired Logirun, Inc. as a long-term investment for ₱250,000 (a 30 percent ordinary share interest in Logirun). On that date, Logirun had net assets with a book value and fair value of ₱800,000. During 2002, Logirun reported profit of ₱90,000 and declared and paid cash dividends of ₱20,000. What is the maximum amount of income that Capitech should report from this investment for 2002? 6,000                                                 26,750           21,000                                                27,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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  1. On January 1, 2002, Capitech Corporation acquired Logirun, Inc. as a long-term investment for ₱250,000 (a 30 percent ordinary share interest in Logirun). On that date, Logirun had net assets with a book value and fair value of ₱800,000. During 2002, Logirun reported profit of ₱90,000 and declared and paid cash dividends of ₱20,000. What is the maximum amount of income that Capitech should report from this investment for 2002?
    1. 6,000                                                 26,750          
    2. 21,000                                                27,000
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