On January 2, 2020, Kesha Corporation bought 10 percent of Bart Corporation's share capital for P500,000 and classified it as FVOCI investment. Bart's net income for the years ended December 31, 2020, and 2021, were P100,000 and P800,000, respectively. On January 2021, Bart declared a dividend of P50,000. No dividends were declared in 2020. On December 31, 2021, the fair value of the Bart stock owned by Kesha had increased to P800,000. How much should Kesha Corporation show on its 2021 income statement as total income from this investment?
On January 2, 2020, Kesha Corporation bought 10 percent of Bart Corporation's share capital for P500,000 and classified it as FVOCI investment. Bart's net income for the years ended December 31, 2020, and 2021, were P100,000 and P800,000, respectively. On January 2021, Bart declared a dividend of P50,000. No dividends were declared in 2020. On December 31, 2021, the fair value of the Bart stock owned by Kesha had increased to P800,000. How much should Kesha Corporation show on its 2021 income statement as total income from this investment?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 2, 2020, Kesha Corporation bought 10 percent of Bart Corporation's share capital for P500,000 and classified it as FVOCI investment. Bart's net income for the years ended December 31, 2020, and 2021, were P100,000 and P800,000, respectively. On January 2021, Bart declared a dividend of P50,000. No dividends were declared in 2020. On December 31, 2021, the fair value of the Bart stock owned by Kesha had increased to P800,000.
How much should Kesha Corporation show on its 2021 income statement as total income from this investment?
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