On January 1, 2023, Hi-Supreme Company acquired 40% of the ordinary shares of an associate for P15,800,000. All the identifiable assets and liabilities of the associate were recorded at fair value. The analysis of the acquisition showed that goodwill of P2,500,000 was acquired. The net income and dividend of the associate were as follows: 2023 2024 Cash dividend paid 12,000,000 16,200,000 Net income 20,500,000 27,800,000 In December 2023, the associate sold inventory to Hi-Supreme Company for P2,500,000. The cost of the inventory was P1,800,000. The inventory remained unsold by Hi-Supreme Company on December 31, 2023. However, it was sold by Hi-Supreme Company in 2024. In December 2024, the associate sold inventory to Hi- Supreme Company for P3,200,000. The cost of the inventory was P2,900,000. This inventory remained unsold by Hi-Supreme Company on December 31, 2024. 3. How much is the investor's share in profit of the associate for 2023? 7,970,000 4. How much is the carrying amount of the investment in associate on December 31, 2023? 18,92M 5. How much is the carrying amount of investment in associate on December 21 20212. 7200
On January 1, 2023, Hi-Supreme Company acquired 40% of the ordinary shares of an associate for P15,800,000. All the identifiable assets and liabilities of the associate were recorded at fair value. The analysis of the acquisition showed that goodwill of P2,500,000 was acquired. The net income and dividend of the associate were as follows: 2023 2024 Cash dividend paid 12,000,000 16,200,000 Net income 20,500,000 27,800,000 In December 2023, the associate sold inventory to Hi-Supreme Company for P2,500,000. The cost of the inventory was P1,800,000. The inventory remained unsold by Hi-Supreme Company on December 31, 2023. However, it was sold by Hi-Supreme Company in 2024. In December 2024, the associate sold inventory to Hi- Supreme Company for P3,200,000. The cost of the inventory was P2,900,000. This inventory remained unsold by Hi-Supreme Company on December 31, 2024. 3. How much is the investor's share in profit of the associate for 2023? 7,970,000 4. How much is the carrying amount of the investment in associate on December 31, 2023? 18,92M 5. How much is the carrying amount of investment in associate on December 21 20212. 7200
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
Related questions
Question
Upvote will be given. Write the complete solutions legibly. The final answer is written on the right side Solve it manually.
Answer numbers 3,4&5
Final Answers:
3. 7, 920,000
4. 18,920,000
5. 23,720,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning