On July 1, 2016, Miller Company purchased 25% of Wall Company’s outstanding ordinary shares and no goodwill resulted from the purchase. Miller appropriately carried this investment at equity and the balance in Miller’s investment account was ₱1,900,000 on December 31, 2016. Wall Company reported net income of ₱1,200,000 for the year ended December 1, 2016, and paid dividend totaling ₱480,000 on December 31, 2016. How much did Miller pay for the 25% interest in Wall? a. 1,720,000 b. 2,020,000 c. 1,870,000 d. 2,170,000 What is the solution for option C?
On July 1, 2016, Miller Company purchased 25% of Wall Company’s outstanding ordinary shares and no goodwill resulted from the purchase. Miller appropriately carried this investment at equity and the balance in Miller’s investment account was ₱1,900,000 on December 31, 2016. Wall Company reported net income of ₱1,200,000 for the year ended December 1, 2016, and paid dividend totaling ₱480,000 on December 31, 2016. How much did Miller pay for the 25% interest in Wall? a. 1,720,000 b. 2,020,000 c. 1,870,000 d. 2,170,000 What is the solution for option C?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2016, Miller Company purchased 25% of Wall Company’s outstanding ordinary shares and no
Miller appropriately carried this investment at equity and the balance in Miller’s investment account was ₱1,900,000 on December 31, 2016.
Wall Company reported net income of ₱1,200,000 for the year ended December 1, 2016, and paid dividend totaling ₱480,000 on December 31, 2016.
How much did Miller pay for the 25% interest in Wall?
a. 1,720,000
b. 2,020,000
c. 1,870,000
d. 2,170,000
What is the solution for option C?
Transcribed Image Text:On July 1, 2016, Miller Company purchased 25% of Wall Company's outstanding ordinary shares and no
goodwill resulted from the purchase.
Miller appropriately carried this investment at equity and the balance in Miller's investment account was
P1,900,000 on December 31, 2016.
Wall Company reported net income of P1,200,000 for the year ended December 1, 2016, and paid
dividend totaling P480,000 on December 31, 2016.
How much did Miller pay for the 25% interest in Wall?
a. 1,720,000
b. 2,020,000
c. 1,870,000
d. 2,170,000
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