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On January 1, 2020, IBM Company paid P1,200,000 for 40,000 shares of Apple Corporation ordinary shares which represents a 25% investment in the net assets of Apple Corporation. IBM has the ability to exercise significant influence over Apple Corporation. IBM received a dividend of P3 per share from Apple Corporation in 2020. The reported net income of Apple Corporation for the year ended December 31, 2020 was P640,000. 29. A. В. C. What is the balance of IBM's investment in Apple Corporation on December 31, 2020? 1,200,000 1,240,000 1,360,000 1,480,000 D. 30. Shangri-la bought the shares of Crossing Inc. as follows: June 10, 2019 December 5, 2019 2,000 shares 3,000 shares P200,000 360.000 P560.000 The following were the transactions for 2020: January 10 June 20 December 10 Received cash dividend at P10 per share Received 20% share dividend Sold 3,000 shares at P120 per share How much is the gain on sale of the shares assuming the FIFO approach is used? A. В. C. D. 60,000 80,000 100,000

On January 1, 2020, IBM Company paid P1,200,000 for 40,000 shares of Apple Corporation ordinary shares which represents a 25% investment in the net assets of Apple Corporation. IBM has the ability to exercise significant influence over Apple Corporation. IBM received a dividend of P3 per share from Apple Corporation in 2020. The reported net income of Apple Corporation for the year ended December 31, 2020 was P640,000. 29. A. В. C. What is the balance of IBM's investment in Apple Corporation on December 31, 2020? 1,200,000 1,240,000 1,360,000 1,480,000 D. 30. Shangri-la bought the shares of Crossing Inc. as follows: June 10, 2019 December 5, 2019 2,000 shares 3,000 shares P200,000 360.000 P560.000 The following were the transactions for 2020: January 10 June 20 December 10 Received cash dividend at P10 per share Received 20% share dividend Sold 3,000 shares at P120 per share How much is the gain on sale of the shares assuming the FIFO approach is used? A. В. C. D. 60,000 80,000 100,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1, 2020, IBM Company paid P1,200,000 for 40,000 shares of Apple Corporation ordinary shares which represents a 25% investment in the net assets of Apple Corporation. IBM has the ability to exercise significant influence over Apple Corporation. IBM received a dividend of P3 per share from Apple Corporation in 2020. The reported net income of Apple Corporation for the year ended December 31, 2020 was P640,000. 29. What is the balance of IBM's investment in Apple Corporation on December 31, 2020? 1,200,000 1,240,000 1,360,000 1,480,000 А. В. C. 30. Shangri-la bought the shares of Crossing Inc. as follows: June 10, 2019 December 5, 2019 2,000 shares 3,000 shares P200,000 360.000 P560.000 The following were the transactions for 2020: January 10 June 20 December 10 Received cash dividend at P10 per share Received 20% share dividend Sold 3,000 shares at P120 per share How much is the gain on sale of the shares assuming the FIFO approach is used? A. В. C. 60,000 80,000 100,000 D.
Transcribed Image Text:On January 1, 2020, IBM Company paid P1,200,000 for 40,000 shares of Apple Corporation ordinary shares which represents a 25% investment in the net assets of Apple Corporation. IBM has the ability to exercise significant influence over Apple Corporation. IBM received a dividend of P3 per share from Apple Corporation in 2020. The reported net income of Apple Corporation for the year ended December 31, 2020 was P640,000. 29. What is the balance of IBM's investment in Apple Corporation on December 31, 2020? 1,200,000 1,240,000 1,360,000 1,480,000 А. В. C. 30. Shangri-la bought the shares of Crossing Inc. as follows: June 10, 2019 December 5, 2019 2,000 shares 3,000 shares P200,000 360.000 P560.000 The following were the transactions for 2020: January 10 June 20 December 10 Received cash dividend at P10 per share Received 20% share dividend Sold 3,000 shares at P120 per share How much is the gain on sale of the shares assuming the FIFO approach is used? A. В. C. 60,000 80,000 100,000 D.
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