What is the carrying amount of the investment

Assignment Help Accounting Basics
Reference no: EM133014279

Question - On January 2021, La Union Company acquired 20% of the outstanding ordinary shares of Pangasinan Company for P8,000,000. This investment gave La Union the ability to exercise significant influence over Pangasinan. The carrying amount of the acquired shares was P6,000,000. The excess of cost over carrying amount was attributed to a depreciable asset which was undervalued on Pangasinan's balance sheet and which had a remaining useful life of ten years. For the year ended December 31, 2021, Pangasinan reported net income of P1,800,000 and paid cash dividends of P400,000 and thereafter issued 5% stock dividend. What is the carrying amount of the investment in Pangasinan Company on December 31, 2021?

Reference no: EM133014279

Questions Cloud

How much is the individual capital of alpha and charlie : The excess is considered as a revaluation (goodwill) to be recognized. How much is the individual capital of Alpha and Charlie after the withdrawal of Beta
Calculate the forward rate with quarterly compounding : The six-month rate is 14% per annum and the nine-month rate is 15% per annum with continuous compounding. Calculate the forward rate with quarterly compounding
Calculate its ending cash balance : Wobble Inc. has a beginning cash balance of $5,980. Its liquidity metric for the period has increased by $1,972. Calculate its ending cash balance
Prepare a cash budget for the first two quarters : Additional data: Equipment was sold in July for $8,000 and $4,500 in November. Prepare a cash budget for the first two quarters
What is the carrying amount of the investment : The carrying amount of the acquired shares was P6,000,000. What is the carrying amount of the investment in Pangasinan Company on December 31, 2021
Developing an ecommerce presence : What are the main factors to consider when developing an eCommerce presence? Which factor do you consider to be the most important? Why?
What is the price of the bond : Question - A bond has a maturity of 2 years and pays a coupon of 4%. The YTM is 2.25%. What is the price of the bond
Set up a schedule of interest expense : Sunland Company sells 10% bonds having a maturity value of $2,120,000 for $1,967,165. Set up a schedule of interest expense
What is the expected return on RKP : The risk-free rate of return is currently 0.03, whereas the market risk premium is 0.07. If the beta of RKP, Inc., stock is 1.9, then what is expected return

Reviews

Write a Review

Accounting Basics Questions & Answers

  Bonds payable

Bonds payable

  Calculate the total product cost of one chair

Diana decides that her workshop is capable of producing a normal output of 1000 chairs annually. Calculate the total product cost of one chair

  Calculate the goodwill amount for the consolidated statement

On 1 April 20X7 Price acquired 100% of Skate for £6 million cash. Calculate the goodwill amount for the consolidated statement of financial position of Price

  Calculate the standard price and quantity for direct labor

PuzzleJigs applies overhead at a rate of $12 per direct labor hour. Calculate the standard price and quantity for direct labor

  What are at least three performance metrics

Based on the data collected, what are at least three performance metrics Henry could develop to measure his strategic objective to efficiently produce meals

  Prepare the journal entry to record bad debt expense

Prepare the journal entry to record bad debt expense assuming Bridgeport Company estimates bad debts at 4% of accounts receivable

  Provide the journal entries

Question - On November 1, 20x1, Pain Co. received a sale order for equipment from Gain Co., a foreign entity, Provide the journal entries

  What is the amount of Company Sandhill check

If Company Sandhill remits a check taking advantage of the discount offered, what is the amount of Company Sandhill's check

  Prepare a cost of production report

Prepare a Cost of Production Report that includes the calculation of equivalent units, the cost per equivalent units

  Problem regarding the more mozart

An advertisement selling specially designed CDs of Mozart's music specifically because they will "strengthen your mind, heal your body, and unlock your creative spirit" claims that "in Japan, a brewery actually re- ported that their best sake is m..

  Compute your net pay for November

Your employer also deducts $60 monthly for your payment of the health insurance premium. Compute your net pay for November

  What is the quantity and cost amount have left in inventory

What is the quantity and cost amount you have left in inventory on 10/31? 6 Decorative Spotlights are defective and sent back to the vendor for Credit

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd