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What amount should ABC report as gain from the sale

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Question - ABC Inc. acquired 30% of XYZ Co.'s voting stock for P200,000 on January 2, 20X0. ABC's 30% interest in XYZ gave ABC the ability to exercise significant influence over XYZ's operating and financial policies. During 20X0, XYZ earned P80,000 and paid dividends of P50,000. XYZ reported earnings of P100,000 for the six months ended June 30, 20X1, and P200,000 for the year ended December 31, 20X1. On July 1, 20X1, ABC sold half of its stock in XYZ for P150,000 cash. XYZ paid dividends of P60,000 on October 1, 20X1. In its 20X1 income statement, what amount should ABC report as gain from the sale of half of its investment?

Reference no: EM132982616

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