Problem 16-13 (AICPA Adapted)000.0E7Presumptuous Company revealed the following informationpertaining to dividends from nontrading investments inordinary shares during the year ended December 31, 2021:The entity owned a 10% interest in Beal Company, whichdeclared a cash dividend of P500,000 on November 30,2021 to shareholders of record on December 31, 2021 andpayable on January 15, 2022.On October 15, 2021, the entity received a liquidatingdividend of P100,000 from Clay Mining Company. Theentity owned a 5% interest in Clay Mining Company.What amount of dividend income should be reported for thecurrent year?a.500,000b.600,000C.150,000d.50,000493

calculation of dividend income for current year are as follows

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What amount of dividend income should be reported for the current year? a. 500,000 b. 600,000 с. 150,000 d. 50,000 493

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

Problem 16-13 (AICPA Adapted)
000.0E7
Presumptuous Company revealed the following information
pertaining to dividends from nontrading investments in
ordinary shares during the year ended December 31, 2021:
The entity owned a 10% interest in Beal Company, which
declared a cash dividend of P500,000 on November 30,
2021 to shareholders of record on December 31, 2021 and
payable on January 15, 2022.
On October 15, 2021, the entity received a liquidating
dividend of P100,000 from Clay Mining Company. The
entity owned a 5% interest in Clay Mining Company.
What amount of dividend income should be reported for the
current year?
a.
500,000
b.
600,000
C.
150,000
d.
50,000
493

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