Reference no: EM133149992

Question 1 - Bay Company holds 60,000 of Fay Company's 200,000 outstanding shares and 8,000 of Hay Company's 400,000 outstanding shares. During the year, Fay declared and paid cash dividends of P10 per share. In the first quarter of the year, Hay declared and distributed a 10% share dividend. Hay also declared and paid its regular cash dividends to its shareholders amounting to P2.50 per share. What amount should be reported as dividend revenue for the current year?

Question 2 - Focus Company accounts for its 10% interest in Bee Company using the cost method. This investment was acquired for P 4,000,000 on January 1, 2021. On January 1, 2022, Focus acquired an additional 20% interest in Bee for P10,000,000. This acquisition cost was equal to the carrying amount of the net assets acquired. On the same date, the fair value of Bee's net assets equaled carrying amount. For the years ended December 31,2021 and 2022, Bee has declared dividends of P2,000,000 and 3,000,000 respectively. The investee has also reported a net income of P6,000,000 for year 2021 and P6,500,000 for year 2022. What is the carrying amount of the investment in associate on December 31, 2022?