1. How much is the net share in the profit or loss of the associate (investment income) in 2021?P480,000P825,000P420,000P135,000 2. How much is the carrying amount of the investment as of December 31, 2021?P7,815,000P8,025,000P7,680,000P7,125,000 On January 1, 2019, CCC Co. acquired 15,000 ordinary shares out of the 100,000 outstanding ordinaryshares of WBA Inc. for P3,150,000. The investment was classified as fair value through profit or loss(FVTPL). The fair values per share of WBA are as follows:December 31, 2019, P260December 31, 2020, P240December 31, 2021, P280On January 1, 2021, CCC purchased an additional 15,000 of WBA's stock representing 15% additionalinterest for P3,600,000 when the carrying amount of WBA's net assets was P12,500,000. The excess wasattributable to the machinery having a remaining life of ten years.On December 31, 2019, WBA reported net income of P1,200,000 and declared and paid dividends ofP500,000. On December 31, 2020, WBA reported net income of P1,400,000 and declared and paiddividends of P550,000. On December 31, 2021, WBA reported net income of P1,600,000 and declaredand paid dividends of P700,000.

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. How much is the net share in the profit or loss of the associate (investment income) in 2021? P480,000 P825,000 P420,000 P135,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8MC

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On July 1, 2021, JKJ Corporation purchased 100 common shares of JMK Ltd. at $20 per share. JKJ expected to be able to sell this investment within a year at $28 per share. Dividends of $1 per share were declared and paid on August 1, 2021. On December 31, 2021, the fair value of each share was $23. What balance was shown in the investment account on JKJ's balance sheet on December 31 (year end)? $2,300 $2,400 $2,000 $2,800
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On 1 May 2019, PR Corp purchased 75 per cent of the equity of SS Corp for $2.6 million. The consideration was 35,000 equity shares in PR Corp with a fair value of $2.6 million. The followings are extracts from the draft (not finalised) statements of profit or loss for PR Corp and its subsidiary SS Corp for the year ending 30 June 2019 together with the draft statements of financial position as at 30 June 2019. The profits of SS Corp have been earned evenly throughout the year 2019. Statements of profit or loss for the year ending 30 June 2019 PR Corp ($000) SS Corp ($000) Gross profit 1,456 960 Profit for the year 920 384 Statements of financial position as at 30 June 2019 PR Corp ($000) SS Corp ($000) Share capital 2,800 740 Retained earnings 11,600 1,324 Revaluation surplus 120 - 14,520 2,064 PR Corp has not yet accounted for the issue of its own…