Problem 3: On January 1, 2021, Nezuko Company entered into a joint arrangement with Tanjiro Company which gives both parties joint control of Kamado Company by acquiring 35% interest in Kamado Company for P500,000. The carrying value of Kamado Company's assets and liabilities approximate their fair values. Based on Nezuko's judgment of the characteristics of the arrangement, it was determined that Nezuko has rights to the net assets of Kamado Company. During 2021, Kamado Company reported net income of P1,000,000 and total comprehensive income of P1,500,000. Kamado Company declared and paid dividends of P600,000 during 2021. 1. How much is the Investment Income to be reported by Nezuko Company in relation to the joint venture? A. P500,000 В. Р350,000 С. Р750,000 D. P525,000 2. How much is the share in Other Comprehensive Income of Kamado Company to be presented in the 2021 financial statements of Nezuko Company? A. P175,000 В. Р250,000 C. P750,000 D. P525,000 3. How much is the dividend income to be reported by Nezuko Company? A. P300,000 В. Р210,000 С. Р600,000 D. PO

Problem 3: On January 1, 2021, Nezuko Company entered into a joint arrangement with Tanjiro Company which gives both parties joint control of Kamado Company by acquiring 35% interest in Kamado Company for P500,000. The carrying value of Kamado Company's assets and liabilities approximate their fair values. Based on Nezuko's judgment of the characteristics of the arrangement, it was determined that Nezuko has rights to the net assets of Kamado Company. During 2021, Kamado Company reported net income of P1,000,000 and total comprehensive income of P1,500,000. Kamado Company declared and paid dividends of P600,000 during 2021. 1. How much is the Investment Income to be reported by Nezuko Company in relation to the joint venture? A. P500,000 В. Р350,000 С. Р750,000 D. P525,000 2. How much is the share in Other Comprehensive Income of Kamado Company to be presented in the 2021 financial statements of Nezuko Company? A. P175,000 В. Р250,000 C. P750,000 D. P525,000 3. How much is the dividend income to be reported by Nezuko Company? A. P300,000 В. Р210,000 С. Р600,000 D. PO

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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