What total amount of income should be recognized for 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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BBB Company purchased 10% of TJ Company's 100,000 outstanding ordinary shares on January 1, 2019 for P500,000. On December 31, 2019, BBB Company purchased an additional 20,000 shares of TJ Company for P1,500,000. TJ Company had not issued any additional shares during 2019. The investee reported earnings of P3,000,000 for 2019. The fair value of the 10% interest is P900,000 on December 31, 2019. What total amount of income should be recognized for 2019?
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