uisition showed that goodwill of P2,500,000 was acquired. The net income and dividend o s follows: 2023 2024 Cash dividend paid 12,000,000 16,200,000 Net income 20,500,000 27,800,000 December 2023, the associate sold inventory to Hi-Supreme Company for P2,500,000. The cost entory was P1,800,000. The inventory remained unsold by Hi-Supreme Company on December
uisition showed that goodwill of P2,500,000 was acquired. The net income and dividend o s follows: 2023 2024 Cash dividend paid 12,000,000 16,200,000 Net income 20,500,000 27,800,000 December 2023, the associate sold inventory to Hi-Supreme Company for P2,500,000. The cost entory was P1,800,000. The inventory remained unsold by Hi-Supreme Company on December
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 2. On January 1, 2023, Hi-Supreme Company acquired 40% of the ordinary shares of an associate for
P15,800,000. All the identifiable assets and liabilities of the associate were recorded at fair value. The analysis of
the acquisition showed that goodwill of P2,500,000 was acquired. The net income and dividend of the associate
were as follows:
2023
2024
Cash dividend paid
12,000,000
16,200,000
Net income
20,500,000
27,800,000
In December 2023, the associate sold inventory to Hi-Supreme Company for P2,500,000. The cost of the
inventory was P1,800,000. The inventory remained unsold by Hi-Supreme Company on December 31, 2023.
However, it was sold by Hi-Supreme Company in 2024. In December 2024, the associate sold inventory to Hi-
Supreme Company for P3,200,000. The cost of the inventory was P2,900,000. This inventory remained unsold by
Hi-Supreme Company on December 31, 2024.
How much is the investor's share in profit of the associate for 2023? 7,970,00
How much is the carrying amount of the investment in associate on December 31, 2023? 18,92 M
How much is the carrying amount of investment in associate on December 31, 2024?
23.72M
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