On January 1, 2021, Kristine Company acquired 10% of the outstanding voting shares of another entity. On January 1, 2022, Kristine Company gained the ability to exercise significant influence over financial and operating control of the entity by acquiring additional 20% of the investee's outstanding shares. The two purchase were made at price proportionate to the value assigned to the investee's net assets which equaled their carrying amount. For the years ended December 31, 2021 and 2022, the investee reported the following: 2021 2022 3,000,000 7,000,000 Dividend paid 8,000,000 9,000,000 Net income What total amount should Kristine include in profit or loss for the year ended December 31, 2022?

On January 1, 2021, Kristine Company acquired 10% of the outstanding voting shares of another entity. On January 1, 2022, Kristine Company gained the ability to exercise significant influence over financial and operating control of the entity by acquiring additional 20% of the investee's outstanding shares. The two purchase were made at price proportionate to the value assigned to the investee's net assets which equaled their carrying amount. For the years ended December 31, 2021 and 2022, the investee reported the following: 2021 2022 3,000,000 7,000,000 Dividend paid 8,000,000 9,000,000 Net income What total amount should Kristine include in profit or loss for the year ended 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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