On July 1, 2015, Denver Company purchased 30,000 shares of Eagle Company's 100,000 outstanding ordinary shares for P200 per share. On December 15, 2015, Eagle paid P400,000 in dividends to its share ordinary shareholders. Eagle's net income for the year ended December 31, 2015 was P1,200,000, earned evenly throughout the year. In its 2015 income statement, what amount of income from the investment should Denver report? a. 360,000 b. 180,000 c. 120,000 d. 60,000
On July 1, 2015, Denver Company purchased 30,000 shares of Eagle Company's 100,000 outstanding ordinary shares for P200 per share. On December 15, 2015, Eagle paid P400,000 in dividends to its share ordinary shareholders. Eagle's net income for the year ended December 31, 2015 was P1,200,000, earned evenly throughout the year. In its 2015 income statement, what amount of income from the investment should Denver report? a. 360,000 b. 180,000 c. 120,000 d. 60,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2015, Denver Company purchased 30,000 shares of Eagle Company's 100,000 outstanding ordinary shares for P200 per share. On December 15, 2015, Eagle paid P400,000 in dividends to its share ordinary shareholders.
Eagle's net income for the year ended December 31, 2015 was P1,200,000, earned evenly throughout the
year.
In its 2015 income statement, what amount of income from the investment should Denver report?
a. 360,000
b. 180,000
c. 120,000
d. 60,000
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