On January 1, 2018, La Carm Co. acquired 30,000 shares of Bora Inc.'s 75,000 shares outstanding for P5,000,000. The book value of Bora Inc's identifiable assets on this date was at P14,000,000. All of the assets approximated their fair values, except: Equipment with 5 years remaining useful life which is overvalued by P1,600,000. Land whose fair value exceeds its carrying amount by P500,000. During 2018, Bora Inc. reported a total comprehensive income of P4,000,000 which was net of a foreign exchange gain reported in as other comprehensive loss at P800,000. Bora Inc., also paid. dividends at P1,500,000 at the end of the year, P500,000 of which is acquired div-on. By La Carm Co. The fair market value of the shares as of this date December 31, 2018 is P210 per share.

On January 1, 2018, La Carm Co. acquired 30,000 shares of Bora Inc.'s 75,000 shares outstanding for P5,000,000. The book value of Bora Inc's identifiable assets on this date was at P14,000,000. All of the assets approximated their fair values, except: Equipment with 5 years remaining useful life which is overvalued by P1,600,000. Land whose fair value exceeds its carrying amount by P500,000. During 2018, Bora Inc. reported a total comprehensive income of P4,000,000 which was net of a foreign exchange gain reported in as other comprehensive loss at P800,000. Bora Inc., also paid. dividends at P1,500,000 at the end of the year, P500,000 of which is acquired div-on. By La Carm Co. The fair market value of the shares as of this date December 31, 2018 is P210 per share.

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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