P200,000 and declares no dividends. What is the carrying amount of the investment in associate on December 31, 20x2? of a. 550,000 b. 590,000 c. 600,000 d. 640,000 PROBLEM 2: FOR CLASSROOM DISCUSSION 1. On January 1, 20x1, Entity A acquires 30% interest in Entity B for P600,000. Entity B reports profit of P200,000 and declares dividends of P50,000 in 20x1. How much is the carrying amount of the investment in associate on December 31, 20x1? a. 600,000 b. 660,000 c. 645,000 d. 630,000 2 Entity A uses the equity method in accounting for its 20% interest in Entity B. Entity B reports profit of P4M for the period. Entity B has outstanding 5% cumulative preference shares with an aggregate par value of P10M. Entity A holds none of the preference shares. Entity B did not declare dividends on the preference shares in the last three vears. including the current year. How much is Entity A's share in the profit of Entity B? r's a. 800,000 b. 700,000 c. 600,000 d. 500,000 3. Entity A acquires 20% interest in Entity B on September 1,

P200,000 and declares no dividends. What is the carrying amount of the investment in associate on December 31, 20x2? of a. 550,000 b. 590,000 c. 600,000 d. 640,000 PROBLEM 2: FOR CLASSROOM DISCUSSION 1. On January 1, 20x1, Entity A acquires 30% interest in Entity B for P600,000. Entity B reports profit of P200,000 and declares dividends of P50,000 in 20x1. How much is the carrying amount of the investment in associate on December 31, 20x1? a. 600,000 b. 660,000 c. 645,000 d. 630,000 2 Entity A uses the equity method in accounting for its 20% interest in Entity B. Entity B reports profit of P4M for the period. Entity B has outstanding 5% cumulative preference shares with an aggregate par value of P10M. Entity A holds none of the preference shares. Entity B did not declare dividends on the preference shares in the last three vears. including the current year. How much is Entity A's share in the profit of Entity B? r's a. 800,000 b. 700,000 c. 600,000 d. 500,000 3. Entity A acquires 20% interest in Entity B on September 1,

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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