On January 1, 2019, Matcha Company purchased 25% of the outstanding ordinary shares of Milk Tea Company at P165 per share. Milk Tea Company had 200,000 ordinary shares outstanding at the time of purchase. Matcha received cash dividend from Less of P210,000 on August 1, 2019 and P240,000 on December 31, 2020. Milk Tea Company reported profit of P680,000 in 2019 and P1,000,000 in year 2020. Market values of each share on December 31, 2019 and December 31, 2020 were P160 and P175, respectively. On January 2, 2021, Maia Corp sold 20,000 shares of its equity investment at Millie Corp for P175 per share. Because of the decrease in ownership shares in Millie Corp, Maia exercised its option to measure the remaining securities at fair value through other comprehensive income on January 2, 2021. For year 2021, Millie Corp reported profit of P3,720,000 and paid Maia Corp, dividends of P120,000. Market value of Millie Corp shares on December 31, 2021 was P180 per share. What is the carrying value of equity investment on December 31, 2021?
On January 1, 2019, Matcha Company purchased 25% of the outstanding ordinary shares of Milk Tea Company at P165 per share. Milk Tea Company had 200,000 ordinary shares outstanding at the time of purchase. Matcha received cash dividend from Less of P210,000 on August 1, 2019 and P240,000 on December 31, 2020. Milk Tea Company reported profit of P680,000 in 2019 and P1,000,000 in year 2020. Market values of each share on December 31, 2019 and December 31, 2020 were P160 and P175, respectively.
On January 2, 2021, Maia Corp sold 20,000 shares of its equity investment at Millie Corp for P175 per share. Because of the decrease in ownership shares in Millie Corp, Maia exercised its option to measure the remaining securities at fair value through other comprehensive income on January 2, 2021. For year 2021, Millie Corp reported profit of P3,720,000 and paid Maia Corp, dividends of P120,000. Market value of Millie Corp shares on December 31, 2021 was P180 per share.
What is the carrying value of equity investment on December 31, 2021?
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