What amount karla report as gain from sale of investment

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Question - Karla Company acquired 20% of Victoria Company' s voting stock for P50,000,000 on January 1, 2020. The 20% interest gave Karla the ability to exercise significant influence over Victoria's operating and financial policies. During 2020, Victoria earned P8,000,000 and paid dividends of P5,000,000. Victoria reported earnings of P6,000,000 for the 6 months ended June 30, 2021, and P10,000,000 for the year ended December 31, 2021. On July 1, 2021, Karla sold half of its stock in Victoria for P33,000,000 for cash. Victoria paid dividends of P3,000,000 on October 1, 2021. In its 2021 income statement, what amount should Karla report as gain from sale of investment?

a. 7,700,000

b. 7,100,000

c. 7,100,000

d. 7,250,000

Reference no: EM132764811

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