Reference no: EM132982174

Question - On January 4, 20X2, ABC Company paid P38,000,000 for 2,000,000 shares of XYZ Co. ordinary shares. The stock investment represents a 25% interest in the net assets of XYZ and gave ABC the ability to exercise significant influence over XYZ's operations. The book value of XYZ's net assets was P106,000,000. The fair value of XYZ's depreciable assets exceeded their book value by P20,000,000. These assets had an average remaining useful life of five years. The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. On December 28, 20X2, ABC received dividends of P1.50 per share. XYZ reported net income of P30,000,000 for the year ended December 31, 20X2. The market value of XYZ's ordinary shares at December, 20X2 was P27.50 per share. Determine the carrying amount of the investment on December 31, 20X2.