The Harvard Company acquired a 30% equity Interest in Baywatch Company for P4,000,000 on January 1, 2019. In the year 2019, Baywatch earned profits of P800,000 and paid no dividends. In the year 2020, Baywatch incurred losses of P320,000 and paid P100,000 dividends. In Harvard's consolidated statement of financial position at December 31, 2020, what should be the carrying amount of interest in Baywatch? a. P4,000,000 b. P4,114,000 c. P4,144,000 d. P4,380,000
The Harvard Company acquired a 30% equity Interest in Baywatch Company for P4,000,000 on January 1, 2019. In the year 2019, Baywatch earned profits of P800,000 and paid no dividends. In the year 2020, Baywatch incurred losses of P320,000 and paid P100,000 dividends. In Harvard's consolidated statement of financial position at December 31, 2020, what should be the carrying amount of interest in Baywatch? a. P4,000,000 b. P4,114,000 c. P4,144,000 d. P4,380,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Harvard Company acquired a 30% equity Interest in Baywatch Company for P4,000,000 on January 1, 2019. In the year 2019, Baywatch earned profits of P800,000 and paid no dividends. In the year 2020, Baywatch incurred losses of P320,000 and paid P100,000 dividends.
In Harvard's consolidated statement of financial position at December 31, 2020, what should be the carrying amount of interest in Baywatch?
In Harvard's consolidated statement of financial position at December 31, 2020, what should be the carrying amount of interest in Baywatch?
a. P4,000,000
b. P4,114,000
c. P4,144,000
d. P4,380,000
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