On January 1, 2019, Blackpink Company purchased nontrading equity securities. On December 31, 2019, the cost and market value were: Cost Market Security A Security B Security C 1,000,000 1,200,000 1,400,000 3,000,000 2,000,000 3,500,000 On July 1, 2020, the entity sold Security C for P3,900,000. What amount of gain on sale should be recognized in 2020 if the securities are designated as measured at FVTOCI? *
1. On January 1, 2019, Blackpink Company acquired a 10% interest in an investee for P3,000,000. The investment was accounted for a fair value through other comprehensive income. The fair value of the investment was P3,500,000 on December 31, 2019. On January 1, 2020, the entity acquired a further 15% interest in the investee for P8,500,000. On such date, the carrying amount of the net assets of the investee was P36,000,000. The fair value of the net assets of the investee is equal to carrying amount except for an equipment whose fair value was P4,000,000 greater than carrying amount. The equipment had a remaining life of 5 years. The investee reported net income of P8,000,000 for 2020 and paid dividend of P5,000,000 on December 31, 2020.
What is the carrying amount of the investment in associate on December 31, 2020?
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