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. On 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 O P900,000

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. On 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 O P900,000

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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