EQUITY INVESTMENTSProblem 4On January 1, 2018, ABC Company purchased 40,000 shares of RST at P100 per share. The investment inmeasurement at fair value through other comprehensive income. Brokerage fees measured to P120,000. AP5 dividend per share of RST had been declared on December 15, 2017 to be paid on March 31, 2018 toshareholders of record on January 31, 2018. No other transactions occurred in 2018 affecting theinvestment in RST shares.What is the initial measurement of the investment?4,120,000a.b. 4,000,000c. 3,920,000d.3,800,000Problem 5Care Company received dividends from its share investments during the year ended December 31, 2011 asfollows:• A stock dividend of P4,000 shares from Part Company on July 31, 2011 when the market price of Part'sshare was P20. Care owns less than 1% of Part's share capital.• A cash dividend of P150,000 from Shark Company in which Day owns a 25% interest. Majority ofShark's director are also directors of Care.What amount of dividend revenue should Care report in its 2011 income statement?a.230,000b.150,000C.80,000d. 0Problem 6On March 1, 2016 Chris Company purchased 10,000 ordinary shares of LV Corp. at P80 per share. OnSeptember 30, 2016, Chris received 10,000 stock rights to purchase an additional 10,000 shares at P90 pershare. The stock rights had an expiration date on February 1, 2017.On September 30, 2016, LVC's share had a market value P95 and the stock right has a market value of P5.What amount should Chris report in its September 30, 2016 statement of financial position for investmentin stock rights?a.150,000b.100,000C.50,000d.60,000ACC 205: Intermediate AccountingIClassification: Public

Measurements of Investment-: In addition to common deviation, a bond's or bond fund's risk is…

On January 1, 2018, ABC Company purchased 40,000 shares of RST at P100 per share. The investment in measurement at fair value through other comprehensive income. Brokerage fees measured to P120,000. A P5 dividend per share of RST had been declared on December 15, 2017 to be paid on March 31, 2018 to shareholders of record on January 31, 2018. No other transactions occurred in 2018 affecting the investment in RST shares.

On January 1, 2018, ABC Company purchased 40,000 shares of RST at P100 per share. The investment in measurement at fair value through other comprehensive income. Brokerage fees measured to P120,000. A P5 dividend per share of RST had been declared on December 15, 2017 to be paid on March 31, 2018 to shareholders of record on January 31, 2018. No other transactions occurred in 2018 affecting the investment in RST shares.

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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