On July 1, 2022, Denver Company purchased 30,000 shares of Eagle Company's 100,000 outstanding ordinary shares for P200 per share representing 30% interest. On December 15, 2022, the investee paid P400,000 in cash dividend to the ordinary shareholders. The investee's net income for the year ended December 31, 2022 was P1,200,000 earned evenly throughout the year. What amount of income from the investment should be reported in 2022? 360,000 a. b. 180,000 120,000 d. 300,000 с.

On July 1, 2022, Denver Company purchased 30,000 shares of Eagle Company's 100,000 outstanding ordinary shares for P200 per share representing 30% interest. On December 15, 2022, the investee paid P400,000 in cash dividend to the ordinary shareholders. The investee's net income for the year ended December 31, 2022 was P1,200,000 earned evenly throughout the year. What amount of income from the investment should be reported in 2022? 360,000 a. b. 180,000 120,000 d. 300,000 с.

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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