P Corporation is parent having purchased 60% of S Company's ordinary shares at par value of P600,000. S Company is in financial difficulty. The parent granted an unsecured loan of P200,000 to the subsidiary. An accounting statement of affairs for S Company shows a dividend of 30%. What amount can P Corporation expect to receive on the loan?
P Corporation is parent having purchased 60% of S Company's ordinary shares at par value of P600,000. S Company is in financial difficulty. The parent granted an unsecured loan of P200,000 to the subsidiary. An accounting statement of affairs for S Company shows a dividend of 30%. What amount can P Corporation expect to receive on the loan?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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P Corporation is parent having purchased 60% of S Company's ordinary shares at par value of P600,000. S Company is in financial difficulty. The parent granted an unsecured loan of P200,000 to the subsidiary. An accounting statement of affairs for S Company shows a dividend of 30%. What amount can P Corporation expect to receive on the loan?
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