Z. On January 1, 2020, Jaya, Inc. acquired as a long-term investment for P1,400,000, a 40% interest in Ramsey Company when the fair value of Ramsey's net assets was P3,500,000. Due to the COVID-19 pandemic, Ramsey Company experienced difficulty in continuing its business and reported the following net losses: 2021 2022 2023 2024 P 1,000.000 1,400,000 1,600,000 800.000 In order to sustain its operations, Jaya made cash advances of P400,000 to Ramsey Company in 2023. On December 31, 2024, it is not expected that Jaya will provide further financial support for Ramsey.

Z. On January 1, 2020, Jaya, Inc. acquired as a long-term investment for P1,400,000, a 40% interest in Ramsey Company when the fair value of Ramsey's net assets was P3,500,000. Due to the COVID-19 pandemic, Ramsey Company experienced difficulty in continuing its business and reported the following net losses: 2021 2022 2023 2024 P 1,000.000 1,400,000 1,600,000 800.000 In order to sustain its operations, Jaya made cash advances of P400,000 to Ramsey Company in 2023. On December 31, 2024, it is not expected that Jaya will provide further financial support for Ramsey.

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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