On January 1, 2021, Family Company purchased 10% of San Company's 100,000 outstanding ordinary shares for P500,000. On July 1, 2021, San declared and paid total dividends of P200,000. Ôn December 31, 2021, Family purchased an additional 20,000 shares of San for P1,500,000. San reported earnings of P3,000,000 for 2021. On December 31, 2021, the fair value of the 10% interest is 180% of the original cost. What amount should be reported as total income for 2021? O P520,000 O P420,000 O P400,000
On January 1, 2021, Family Company purchased 10% of San Company's 100,000 outstanding ordinary shares for P500,000. On July 1, 2021, San declared and paid total dividends of P200,000. Ôn December 31, 2021, Family purchased an additional 20,000 shares of San for P1,500,000. San reported earnings of P3,000,000 for 2021. On December 31, 2021, the fair value of the 10% interest is 180% of the original cost. What amount should be reported as total income for 2021? O P520,000 O P420,000 O P400,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![On January 1, 2021, Family Company purchased 10% of San Company's 100,000 outstanding ordinary
shares for P500,000. Ôn July 1, 2021, San declared and paid total dividends of P200,000. Ôn December
31, 2021, Family purchased an additional 20,000 shares of San for P1,500,000. San reported earnings
of P3,000,000 for 2021. On December 31, 2021, the fair value of the 10% interest is 180% of the original
cost. What amount should be reported as total income for 2021?
P520,000
P420,000
P400,000
P900,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F34c9842a-87a0-4cb7-8abd-9cde4fa9a657%2F8840372e-c5fa-4c83-8abe-9de3eba8e273%2Fjwiaxcq_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 2021, Family Company purchased 10% of San Company's 100,000 outstanding ordinary
shares for P500,000. Ôn July 1, 2021, San declared and paid total dividends of P200,000. Ôn December
31, 2021, Family purchased an additional 20,000 shares of San for P1,500,000. San reported earnings
of P3,000,000 for 2021. On December 31, 2021, the fair value of the 10% interest is 180% of the original
cost. What amount should be reported as total income for 2021?
P520,000
P420,000
P400,000
P900,000
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