What is the carrying value of the investment in latt company

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Problem 1: On January 1, 2009, Bing Company purchased 30,000 shares of Latt Company's 200,000 outstanding ordinary shares for P 6,000,000. On that date, the carrying amount of the acquired shares on Latt's books was 4,000,000. Bing attributed the excess of cost over carrying amount to patent. The patent has a remaining useful life of 10 years. During 2009, Bing's officers gained a majority on Latt's board of directors. Latt reported earnings of 5,000,000 for the year ended December 31, 2009, and declared and paid dividend of P 3,000,000 during 2009. On December 31, 2009, Latt's ordinary share was trading over-the-counter at P15. What is the carrying value of the investment in Latt Company on December 31, 2009?

Reference no: EM132793319

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