On October 15, 2020, the Liza Company received a liquidating dividend of P100,000 from Edward Company. The entity owned 25,000 shares, representing 5% ownership interest in this mining company, at a cost of P2,500,000. A. What amount should be reported as investment in David Company for the year ended December 31, 2020? B. What amount of dividend income should be reported for the year ended December 31,2020?
On October 15, 2020, the Liza Company received a liquidating dividend of P100,000 from Edward Company. The entity owned 25,000 shares, representing 5% ownership interest in this mining company, at a cost of P2,500,000. A. What amount should be reported as investment in David Company for the year ended December 31, 2020? B. What amount of dividend income should be reported for the year ended December 31,2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On October 15, 2020, the Liza Company received a liquidating dividend of P100,000 from Edward Company. The entity owned 25,000 shares, representing 5% ownership interest in this mining company, at a cost of P2,500,000.
A. What amount should be reported as investment in David Company for the year ended December 31, 2020?
B. What amount of dividend income should be reported for the year ended December 31,2020?
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