On January 1, 2020, Edelyn Corporation acquired 10,000 shares of JKL Company for P500,000. The 10,000 shares are equivalent to 20% interest of the investee. JKL Company reported the following net income or loss: 2020 - P1,000,000 2021 - (P5,000,000) 2022 - P300,000 Requirements: 1. Prepare the necessary journal entries to record the share of income or loss in 2020, 2021, and 2022. 2 What is the carrying value of the investment on December 31, 2020? December 31, 2021? December 31, 2022?

On January 1, 2020, Edelyn Corporation acquired 10,000 shares of JKL Company for P500,000. The 10,000 shares are equivalent to 20% interest of the investee. JKL Company reported the following net income or loss: 2020 - P1,000,000 2021 - (P5,000,000) 2022 - P300,000 Requirements: 1. Prepare the necessary journal entries to record the share of income or loss in 2020, 2021, and 2022. 2 What is the carrying value of the investment on December 31, 2020? December 31, 2021? December 31, 2022?

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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