Reference no: EM132935905
Questions -
Q1) On January 1, 2019, BTS Corp. acquired 30% of the voting share capital of another entity for P2,000,000 which was equal to the carrying amount of interest acquired. The investee reported net income of P1,500,000 for 2019 and paid dividend of P500,000 on December 31, 2019. The investee reported net income of P1,000,000 for the six months ended June 30, 2020 and P2,500,000 for the year ended December 31, 2020 but paid dividend of P1,000,000 on October 1, 2020. On July 1, 2020, BTS Corp. sold half of the investment of P2,000,000. The fair value of the retained investment is P2,200,000 on July 1, 2020 and P2,400,000 on December 31, 2020. The retained investment is to be measured at FVPL. What is the carrying amount of the investment before the disposal on June 30, 2020?
-P2,600,000
-P2,300,000
-P2,450,000
-P2,750,000
Q2) As of January 1, 2020 , ABC Company has an accounts receivable balance of P 750,000. During the year, P 200,000 of the accounts receivable were assigned for a bank loan applied of P 100,000 and P 300,000 were factored with a factoring fee of 5% and 10% were withheld for any anticipated sales returns. Collections from the assigned accounts of P 50,000 were in this was applied first to interest of P 7,000 by ABC Company under non-notification basis. Also, there are sales returns of P 2,000. How much accounts receivable must be presented as of December 31, 2020, assuming only the above transactions happened during the year?
-348,000
-398,000
-350,000
-400,000