On January 1, 20X0, Station invested P2,000,000 cash in a joint venture for 50% interest. For the years ended December 31, 20X0, 20X1, and 20X2, the joint venture reported the following data:YearNet Income (Net Loss)Dividend Distribution20X0P1,000,000P300,00020X1(6,000,000)-20X27,000,000500,000Determine the following:Share in net loss or investment to be reported by Station for the year ended December 31, 20X1.The book value of Investment in Joint venture to be reported by Station as of December 31, 20X2.

Consolidated financial statements are a set of financial statements prepared for a group company…

Answered: On January 1, 20X0, Station invested…

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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On January 1, 20X0, Station invested P2,000,000 cash in a joint venture for 50% interest. For the years ended December 31, 20X0, 20X1, and 20X2, the joint venture reported the following data:

Year	Net Income (Net Loss)	Dividend Distribution
20X0	P1,000,000	P300,000
20X1	(6,000,000)	-
20X2	7,000,000	500,000

Determine the following:

Share in net loss or investment to be reported by Station for the year ended December 31, 20X1.
The book value of Investment in Joint venture to be reported by Station as of December 31, 20X2.

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