What amount should gigantic report as investment income

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Question 1: Gigantic Company bought 20% of Grateful Corporation's ordinary shares on January 1, 2019 for P30,000,000. Carrying amount of Grateful's net assets at purchase date totaled P90,000,000. Fair value and carrying amounts were the same for all items except for plant and inventory, for which fair values exceed their carrying amounts by P22,500,000 and P7,500,000 respectively. The plant has a 5-year life. All inventory was sold during 2019. Goodwill, if any, has an indefinite life. During 2019, Grateful reported net income of P60,000,000 and paid a P22,500,000 cash dividend. What amount should Gigantic report as investment income for 2019?

Reference no: EM132586530

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