What amount should be reported as investment income for year

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Reference no: EM132817012

Norm Company owned 20% of Love Company's preference share capital and 50% of the ordinary share capital.

Love Company's share capital outstanding on December 31, 2020 is as follows:

10% cumulative preference share capital 2,000,000

Ordinary share capital 7,000,000

Love Company reported net income of P 5,000,000 for the year ended December 31, 2020.

Question 1: What amount should be reported as investment income for the year ended December 31, 2020?

A. P 2,400,000

B. P 2,500,000

C. P 2,600,000

D. P 2,700,000

Reference no: EM132817012

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