What should be the gain on sale of this investment in park

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Park Corporation acquired 30% of Light Company's voting stock on January 2, 2019 for P2,000,000. During 2019, Light earned P800,000 and paid dividends of P500,000. Park's interest in Light of 30%, gives Park the ability to exercise significant influence over Light's operating and financial policies. For the year 2020, Light earned P1,000,000 but paid dividends of P300,000 on April 1, and another P300,000 on October 1, 2020. On July 1, 2020, Park sold half of its stock investment in Light for P1,320,000 cash.

Question 1: What should be the gain on sale of this investment in Park's 2020 profit or loss?

a) P200,000         c) P275,000

b) P245,000          d) P320,000

Reference no: EM132893586

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