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What is the balance of investment in jose company account

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On January 1, 2015, Pablo Corporation acquired 1,800 shares of the outstanding capital stock of Jose Company for P270,000. As of this date, the stockholders' equity of Jose Company consisted of the following:

Capital Stock, P100 par P600,000
Retained Earnings 240,000

On July 1, 2016, Pablo Corporation sold 360 shares of its investment of Jose Company stock for P80,000. Changes in the retained earnings account of Jose Company are as follows:

Year 2015

Income from Operations P168,000
Dividends Declared at December 31, 2015 126,000

Year 2016

Income from Operations 210,000
Dividends Declared at December 31, 2016 189,000

The investment is accounted for by the equity method.

Problem 1: What is the balance of investment in Jose Company Account on December 31, 2016?

a. P205,920
b. P180,720
c. P314,100
d. P231,120

Reference no: EM132839935

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