Perseverance Company received dividends from its investments in ordinary shares during the year 2019 as follows: A share dividend of 20,000 shares from A Company when the market price of A’s shares was P30 per share. A cash dividend of P2,000,000 from B Company in which Perseverance owns a 20% interest. A cash dividend of P1,500,000 from C Company in which Perseverance owns a 10% interest. 10,000 ordinary shares of D Company in lieu of cash dividend of P20 per share. The market price of D Company’s shares was P180. Perseverance holds originally 100,000 ordinary shares of D Company. Perseverance owns 5% interest in D Company. A liquidating dividend of P2,000,000 from E Company. Perseverance owns a 5% interest in E Company. A dividend in kind of one ordinary share of X Company for every 5 ordinary shares of F Company held. Perseverance holds 200,000 F Company shares which have a market price of P50 per share. The market price of X Company’s ordinary share is P30 per share. What amount of dividend income should Perseverance report in its 2019 income statement?
Perseverance Company received dividends from its investments in ordinary shares during the year 2019 as follows:
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A share dividend of 20,000 shares from A Company when the market price of A’s shares was P30 per share.
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A cash dividend of P2,000,000 from B Company in which Perseverance owns a 20% interest.
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A cash dividend of P1,500,000 from C Company in which Perseverance owns a 10% interest.
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10,000 ordinary shares of D Company in lieu of cash dividend of P20 per share. The market price of D Company’s shares was P180. Perseverance holds originally 100,000 ordinary shares of D Company. Perseverance owns 5% interest in D Company.
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A liquidating dividend of P2,000,000 from E Company. Perseverance owns a 5% interest in E Company.
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A dividend in kind of one ordinary share of X Company for every 5 ordinary shares of F Company held. Perseverance holds 200,000 F Company shares which have a market price of P50 per share. The market price of X Company’s ordinary share is P30 per share.
What amount of dividend income should Perseverance report in its 2019 income statement?
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