Uhder the75% of theDay Co. at P90 per share, the fair value on this date. Theacquisition results in Sun Co. obtaining significant influenceover Day Co. Day Co.'s total outstanding shares remain at100,000. Day Co. reports 20x1 profit of P3,300,000 (earnedevenly during the year) and declares and pays P600,000 cashdividends at year-end. Day Co.'s shares are quoted at P92 pershare on Dec. 31, 20x1. How much are reported in Sun Co.'sInvestment in associatea May 1, 20x1, Sun Co. acquires additional 12,000 shares ofs date. Anitz reportsvidends ofed evenly- share onct of theShare in profit of associatea. 660,000b. 660,000Dec. 31, 20x1 financial statements for the following?1,620,0001,840,000420,5002,208,000C. 528,000d. 440,0002,120,000eg Co.ale is as 12. What would be the effectprofit or loss if the accumulated other comprehensive incomerepresents revaluation gain (rather than translation gain) andLim Co. retains significant influence over Teg Co. after thesale?C.d.(Adaptea. 175,000b. 200,000c. 225,000d. 275,00015. JoJol13. Sun Co. accounts for its 8% interest in the 100,000 outstandingshares of Day Co. as held for trading securities. Theinvestment has a carrying amount of P800,000 on Jan. 1, 20xl.inInvestrInvest

Business combination: Business combination is defined as the process where one company acquires…

Answered: Share in profit of associate a. 660,000…

Share in profit of associate a. 660,000 b. 660,000 Investment in associate 1,620,000 1,840,000 C. 528,000 d. 440,000 2,208,000 2,120,000

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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Question

Uhder the
75% of the
Day Co. at P90 per share, the fair value on this date. The
acquisition results in Sun Co. obtaining significant influence
over Day Co. Day Co.'s total outstanding shares remain at
100,000. Day Co. reports 20x1 profit of P3,300,000 (earned
evenly during the year) and declares and pays P600,000 cash
dividends at year-end. Day Co.'s shares are quoted at P92 per
share on Dec. 31, 20x1. How much are reported in Sun Co.'s
Investment in associate
a May 1, 20x1, Sun Co. acquires additional 12,000 shares of
s date. An
itz reports
vidends of
ed evenly
- share on
ct of the
Share in profit of associate
a. 660,000
b. 660,000
Dec. 31, 20x1 financial statements for the following?
1,620,000
1,840,000
420,500
2,208,000
C. 528,000
d. 440,000
2,120,000
eg Co.
ale is as

12. What would be the effect
profit or loss if the accumulated other comprehensive income
represents revaluation gain (rather than translation gain) and
Lim Co. retains significant influence over Teg Co. after the
sale?
C.
d.
(Adapte
a. 175,000
b. 200,000
c. 225,000
d. 275,000
15. Jo
Jol
13. Sun Co. accounts for its 8% interest in the 100,000 outstanding
shares of Day Co. as held for trading securities. The
investment has a carrying amount of P800,000 on Jan. 1, 20xl.
in
Investr
Invest

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