On January 1, 2020, Hannah Company purchased 20% of Montana Company fro P3,000,000. This investment did not give Hannah the ability to exercise significant influence over Montana Company. During 2020, Montana Company reported net income of P3,500,000 and paid cash dividends of P4,000,000. What is the carrying amount of the investment in Montana Company on December 31, 2020?
On January 1, 2020, Hannah Company purchased 20% of Montana Company fro P3,000,000. This investment did not give Hannah the ability to exercise significant influence over Montana Company. During 2020, Montana Company reported net income of P3,500,000 and paid cash dividends of P4,000,000. What is the carrying amount of the investment in Montana Company on December 31, 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Hannah Company purchased 20% of Montana Company fro P3,000,000. This investment did not give Hannah the ability to exercise significant influence over Montana Company. During 2020, Montana Company reported net income of P3,500,000 and paid cash dividends of P4,000,000.
What is the carrying amount of the investment in Montana Company on December 31, 2020?
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