Reference no: EM133134474
Question 1 - On December 31, 2021, Scott Company received the following dividends:
|
Investee Company
|
Investee's no. of shares
|
Cost per share
|
Percentage of ownership
|
Type of dividends
|
Dividends per share
|
|
Frost Company
|
100,000
|
200
|
10%
|
Cash
|
20
|
|
Grey Company
|
200,000
|
250
|
15%
|
Property
|
25
|
|
Blaire Company
|
250,000
|
280
|
12%
|
Shares
|
30
|
Grey Company will distribute its shares to Summers Company.
1. How much is the total dividend income reported on December 31, 2021?
2. How much is the cost per share of Investment in Blaire Company on December 31, 2021?
Question 2 - On January 1, 2021, Belgium Company purchased 20% of Russia Company's outstanding ordinary shares for P4,000,000.
Belgium Company is the largest single shareholder in Russia Company and Russia Company's officers are a majority on Belgium Company's board of directors.
Russia, for the year, reported a net income of P8,000,000 and paid dividends of P3,000,000.
How much is the Investment in associate on December 31, 2021?