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What is the carrying amount of the investment

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Question - On January 1, 2023, Too Late Company acquired 40% interest of Too Early Company for P6,000,000. On this date, all of the identifiable assets and liabilities of Too Early Company were recorded at fair value. The acquisition resulted in a goodwill of P300,000. Too Early Company reported net income of P3,000,000 for 2023 and P4,000,000 for 2024. The Too Early paid cash dividend of P1,000,000 on December 31, 2023 and P1,500,000 on December 31, 2024.

On January 1, 2023, Too Early sold inventory to Too Late for P900,000. The cost of the inventory was P400,000. The inventory remaining unsold on December 31, 2023 but was sold by the investor in 2024.

Required -

What is the investment income for 2023?

What is the carrying amount of the investment in associate on December 31, 2023?

What is the investment income in 2024?

What is the carrying amount of the investment in associate on December 31, 2024?

Reference no: EM132969748

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