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What amount Thank Company report in its profit or loss

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Problem - Thank Company purchased 40% of God Company's outstanding ordinary shares on January 2, 2020 for P8,000,000. The carrying amount of God's net assets at the date of purchase totaled P18,504,000. Fair values and carrying values were the same for all ' items except for plant and inventory for which fair values exceeded their carrying amounts by P1,000.000 and P200,000, respectively. The plant has a 20-year life. The entire inventory was sold during 2020. Goodwill, if any. is not to be amortized and no impairment test has been done since the company believes that the goodwill has yet to decline its value. During 2020. God Company reported net of tax income of P2,400,000 and paid a P400.000 cash dividends. Income tax rate is 32%. What amount should Thank Company report in its profit or loss from its investment in God Company for the year ended December 31. 2020?

Reference no: EM132939193

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