ordinary shares of Universal Company for P9,000,000. At the time of purchase, Universal Company had outstanding 800,000 shares with carrying amount of P36,000,000. The following events took place during the current year: - Universal Company reported net income of P1,800,000 for the current year - Remingtong Company received from Universal Company a dividend of P3.00 per ordinary share or P600,000. - The market value of Universal Company share had temporarily declined to P40. Assuming the investment is a FA@FVPL. What is the carrying amount of the investment at year-end? a.) 9,000,000
ordinary shares of Universal Company for P9,000,000. At the time of purchase, Universal Company had outstanding 800,000 shares with carrying amount of P36,000,000. The following events took place during the current year: - Universal Company reported net income of P1,800,000 for the current year - Remingtong Company received from Universal Company a dividend of P3.00 per ordinary share or P600,000. - The market value of Universal Company share had temporarily declined to P40. Assuming the investment is a FA@FVPL. What is the carrying amount of the investment at year-end? a.) 9,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the beginning of the current year, Remington Company acquired 200,000 ordinary shares of Universal Company for P9,000,000.
At the time of purchase, Universal Company had outstanding 800,000 shares with carrying amount of P36,000,000.
The following events took place during the current year:
- Universal Company reported net income of P1,800,000 for the current year
- Remingtong Company received from Universal Company a dividend of P3.00 per ordinary share or P600,000.
- The market value of Universal Company share had temporarily declined to P40.
Assuming the investment is a FA@FVPL. What is the carrying amount of the investment at year-end?
a.) 9,000,000
b.) 8,000,000
c.) 9,300,000
d.) 9,450,000
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