On January 1, 2021, Brianne Company acquired 30% of the voting share capital of another entity for P5,000,000 which was equal to the book value of interest acquired. The investee reported net income of P4,000,000 for 2021 and P6,000,000 for 2022 but paid no dividends during the two-year period. On July 1, 2022, Brianne Company sold half of the investment for P4,500,000. The fair value of the retained investment was P4,800,000 on July 1, 2022 and P5,500,000 on December 31, 2022. The retained investment is to be held at FVTOCI. What is the gain on sale of investment that should be reported in 2022 income statement? . What amount of gain from remeasurement of investment should be reported in the 2022 income statement?

On January 1, 2021, Brianne Company acquired 30% of the voting share capital of another entity for P5,000,000 which was equal to the book value of interest acquired. The investee reported net income of P4,000,000 for 2021 and P6,000,000 for 2022 but paid no dividends during the two-year period. On July 1, 2022, Brianne Company sold half of the investment for P4,500,000. The fair value of the retained investment was P4,800,000 on July 1, 2022 and P5,500,000 on December 31, 2022. The retained investment is to be held at FVTOCI. What is the gain on sale of investment that should be reported in 2022 income statement? . What amount of gain from remeasurement of investment should be reported in the 2022 income statement?

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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