Reference no: EM132638952

Questions -

Q1. Fox Corporation purchased 25 percent of Down Company's stock in January 1, 2020 for P 600,000. At the acquisition date, Down has equipment with a market value of P 250,000 greater than book value. On that date, Fox Corporation gives the ability to have joint control with another entity over Down Company. The equipment has an estimated remaining life of 10 years. In 2020, Down has net income of P 320,000 and pays P 80,000 of dividends. What is the balance in the investment account on Fox's financial records at the end of 2020?

Q2. Ranto and Santo formed a joint operation to acquire and sell a special type of merchandise Ranto is to manage the operation and to furnish the capital. The participants are to share equally any gain or loss on the joint operation. On April 1, 2020, Santo sent Ranto P 10,000 cash, which was all used to purchase merchandise. Ranto paid freight of P 260 on the merchandise purchased. On April 27, one half of the merchandise was sold for P 7,200 cash. Ranto paid the cost of delivering merchandise to customers which amounted to P 240. No further transactions occurred until the end of the month. The profit (loss) of the operation for the month of April, 2011 is?