- What is the investment carrying amount at December 31, 2021?A. P1,920,000B. P1,790,000C. P1,730,000D. P1,700,000 - Assume the excess of acquisition cost over the underlying equity acquired is due to a piece of equipment with remaining life of 5 years on the date of investment acquisition, and a straight-line depreciation basis, whatis the investment carrying amount at December 31, 2021?A. P1,920,000B. P1,790,000C. P1,745,000D. P1,730,000 N. On March 31, 2021, Gray Company purchased 120,000 ordinary shares of Len Company for P1,700,000, representing30% of Len Company's outstanding ordinary shares and an underlying equity of P1,400,000 in Len Company's netassets on that date. The excess of the acquisition cost over the equity acquired cannot be attributed to any tangibleasset. As a result of Gray's 30% ownership of Len Company, Gray has the ability to exercise significant influence overLen Company's financial and operating policies.On March 1, June 1, September 1 and December 1, all of 2021, Len Company paid quarterly dividend of P0.50 perordinary share on each of these dates. Len Company's profit for the year ended December 31, 2021 was P1,200,000that was earned evenly throughout the year. At December 31, 2021, each ordinary share of Len Company was sellingat P16.

Name: - What is the investment carrying amount at December 31, 2021?A. P1,92
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Description: - What is the investment carrying amount at December 31, 2021?A. P1,920,000B. P1,790,000C. P1,730,000D. P1,700,000 - Assume the excess of acquisition cost over the underlying equity acquired is due to a piece of equipment with remaining life of 5 yea

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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- What is the investment carrying amount at December 31, 2021?

A. P1,920,000

B. P1,790,000

C. P1,730,000

D. P1,700,000

- Assume the excess of acquisition cost over the underlying equity acquired is due to a piece of equipment with

remaining life of 5 years on the date of investment acquisition, and a straight-line depreciation basis, what

is the investment carrying amount at December 31, 2021?

A. P1,920,000

B. P1,790,000

C. P1,745,000

D. P1,730,000

N. On March 31, 2021, Gray Company purchased 120,000 ordinary shares of Len Company for P1,700,000, representing
30% of Len Company's outstanding ordinary shares and an underlying equity of P1,400,000 in Len Company's net
assets on that date. The excess of the acquisition cost over the equity acquired cannot be attributed to any tangible
asset. As a result of Gray's 30% ownership of Len Company, Gray has the ability to exercise significant influence over
Len Company's financial and operating policies.
On March 1, June 1, September 1 and December 1, all of 2021, Len Company paid quarterly dividend of P0.50 per
ordinary share on each of these dates. Len Company's profit for the year ended December 31, 2021 was P1,200,000
that was earned evenly throughout the year. At December 31, 2021, each ordinary share of Len Company was selling
at P16.

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