What is the investment in Goldman Company balance

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Question - Goldman Company reports net income of PI40,000 each year and pays an annual cash dividend of P50.000. The company holds net assets of P1,200,000 on January 1,2019. On that date, Wallace Company purchases 40 percent of the outstanding stock for P600,000, which gives it the ability to have joint control with Zimmerman Company over Goldman. At the purchase date, the excess of Wallace's cost over its proportionate share of Goldman's book value was assigned to goodwill. On December 31, 2015, what is the investment in Goldman Company balance (equity method) in Wallace's financial records?

Reference no: EM132801799

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