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Problem 17-12 (AICPA Adapted) At the beginning of current year, Bliss Company purchased 10% of Red Company's outstanding ordinary shares for P4,000,000. Bliss Company is the largest single shareholder in Red Company and Bliss Company's officers are a majority on Red Company's board of directors. Red Company reported net income of P5,000,000 for the current year and paid dividends of P1,500,000. What amount should be reported as investment in associate at year-end? a. 4,350,000 b. 4,500,000 c. 4,000,000 d. 3,850,000

Problem 17-12 (AICPA Adapted) At the beginning of current year, Bliss Company purchased 10% of Red Company's outstanding ordinary shares for P4,000,000. Bliss Company is the largest single shareholder in Red Company and Bliss Company's officers are a majority on Red Company's board of directors. Red Company reported net income of P5,000,000 for the current year and paid dividends of P1,500,000. What amount should be reported as investment in associate at year-end? a. 4,350,000 b. 4,500,000 c. 4,000,000 d. 3,850,000

FINANCIAL ACCOUNTING
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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10% of Red Company's outstanding ordinary shares for Problem 17-12 (AICPA Adapted) At the beginning of current year, Bliss Company purchased P4,000,000. Bliss Company is the largest single shareholder in Red Company and Bliss Company's officers are a majority on Red Company's board of directors. Red Company reported net income of P5,000,000 for the current year and paid dividends of P1,500,000. What amount should be reported as investment in associate at year-end? a. 4,350,000 b. 4,500,000 c. 4,000,000 d. 3,850,000
Transcribed Image Text:10% of Red Company's outstanding ordinary shares for Problem 17-12 (AICPA Adapted) At the beginning of current year, Bliss Company purchased P4,000,000. Bliss Company is the largest single shareholder in Red Company and Bliss Company's officers are a majority on Red Company's board of directors. Red Company reported net income of P5,000,000 for the current year and paid dividends of P1,500,000. What amount should be reported as investment in associate at year-end? a. 4,350,000 b. 4,500,000 c. 4,000,000 d. 3,850,000
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