Determine the carrying value of Mill investment in Nash

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Problem - On January 3, 2019, Mill Company acquired 20% of the outstanding ordinary shares of Nash Company for P7,000,000. This investment gave Mill the ability to exercise significant influence over Nash. The book value of the acquired shares was P6,000,000. The excess of cost over book value was attributed to land which was undervalued on Nash's statement of financial position. For the year ended December 31, 2019, Nash reported net income of P2,500,000 and paid cash dividends of P500,000 on its ordinary shares. At December 31, 2019, determine the carrying value of Mill's investment in Nash?

Reference no: EM132855850

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