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Question - At the beginning of current year, Puerto Rico Company purchased 25% of San Juan Company. No "excess" resulted from the acquisition. Puerto Rico Company appropriately carried this investment at equity and the carrying amount of the investment was P1,900,000 at year-end. San Juan Company reported net income of P1,200,000 for the current year and paid cash dividend of P480,000 at year-end. What amount did Puerto Rico Company pay for the 25% interest in San Juan Company?
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Coburn (beginning capital, $62,500) and Webb (beginning capital $90,100) are partners. Prepare the journal entry to record the allocation of net income
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