Reference no: EM132652694
Question - CHANGE FROM FAIR VALUE THROUGH PROFIT OR LOSS TO EQUITY METHOD
On January 1, 2016, Christine Co. acquired 15,000 ordinary shares out of the 100,000 outstanding ordinary shares of Mary Inc. for P3,150,000. The investment was classified as fair value through profit or loss (FVTPL). The fair value per share of Mary are as follows: December 31, 2016, P260; December 31, 2017, P240 and December 31, 2018, P280.
On January 1, 2018, Christine purchased an additional 15,000 of Mary's stock for representing 15% additional interest for P3,600,000 when the carrying amount of Mary's net assets was P12,500,000. The excess was attributable to the machinery having a remaining life of ten years.
On December 31, 2016, Mary reported net income of P1,200,000 and declared and paid dividends of P500,000. On December 31, 2017, Mary reported net income of P1,400,000 and declared and paid dividends pf P550,000. On December 31, 2018. Mary reported net income of P1,600,000 and declared and paid dividends of P700,000.
REQUIRED - Provide the journal entries in 2016, 2017, and 2018?