The following transactions pertain to PARANGAWAMONA Corporation: • Purchased 15,000 shares of the P100 par value ordinary shares of MAAWAKANA Corporation for P1,850,000 representing 25% interest on January 1, 2018. The net assets of MAAWAKANA are fairly stated at P8,200,000. It is the company's policy to account any excess to the undervaluation of land. • MAAWAKANA reported net income of P820,100 for 2018 and a loss of P529,540 for 2019. • MAAWAKANA issued 15% share dividend for 2018 and paid cash dividend of P375,000 on the ordinary shares on 2019 • On January 5, 2020, sold 30% of its MAAWAKANA shares at P175 per share.

The following transactions pertain to PARANGAWAMONA Corporation: • Purchased 15,000 shares of the P100 par value ordinary shares of MAAWAKANA Corporation for P1,850,000 representing 25% interest on January 1, 2018. The net assets of MAAWAKANA are fairly stated at P8,200,000. It is the company's policy to account any excess to the undervaluation of land. • MAAWAKANA reported net income of P820,100 for 2018 and a loss of P529,540 for 2019. • MAAWAKANA issued 15% share dividend for 2018 and paid cash dividend of P375,000 on the ordinary shares on 2019 • On January 5, 2020, sold 30% of its MAAWAKANA shares at P175 per share.

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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