Reference no: EM132893582

Man Company purchased 10% of Kind Corporation's 200,000 outstanding shares of ordinary shares on January 2, 2020 for P2,500,000. On October 31, 2020, Man Company purchased another 40,000 shares of Kind for P6,000,000. There was no goodwill as a result of either acquisition and Kind had not issued any stock dividends during 2020. Kind reported earnings of P6,000,000 for the year ended December 31, 2020.

Question 1: What amount should Man Company report in its December 31, 2020 balance sheet as Investment in Kind?

a) P8,500,000         c) P 9,400,000

b) P9,300,000         d) P10,300,000