- On Sept. 1, 20x1, Lone Co. acquires 35% of the 100,000 qutstanding shares of Social Co. for P1,200,000. Social Co.'s net identifiable assets are fairly valued on this date. In 20x1, Social Co. reports profit of P1,500,000 and declares and pays cash dividends of P600,000. For the year ended Dec. 31, 20x1, how much should Lone Co. report as share in the associate's profit and investment in associate, respectively? C. 175,000; 1,165,000 d. 210,000; 1,200,000 c. 350,000; 1,340,000 d. 131,250; 1,121,250

- On Sept. 1, 20x1, Lone Co. acquires 35% of the 100,000 qutstanding shares of Social Co. for P1,200,000. Social Co.'s net identifiable assets are fairly valued on this date. In 20x1, Social Co. reports profit of P1,500,000 and declares and pays cash dividends of P600,000. For the year ended Dec. 31, 20x1, how much should Lone Co. report as share in the associate's profit and investment in associate, respectively? C. 175,000; 1,165,000 d. 210,000; 1,200,000 c. 350,000; 1,340,000 d. 131,250; 1,121,250

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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