What amount of revenue from investment should be reported

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Question - At the beginning of current year, Diana Company acquired as a long-term investment a 20% ordinary share interest in East Company.

Diana paid P7,000,000 for this investment when the fair value of the investee's net assets was P35,000,000.

The investee reported net income of P4,000,000 for the current year and declared and paid cash dividend of P1,600,000.

Required - What amount of revenue from the investment should be reported for the current year?

Reference no: EM133115595

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