What total amount of income from investment should

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On January 2, 2017, Horizon Company, a medium-sized entity acquired 20% of the outstanding ordinary shares of Meadow Company for P2,200,000 which included P50,000 transaction cost. This investment gave Horizon the ability to exercise significant influence over Meadow Company. The book value of the acquired shares was P1,800,000. The excess of cost over book value was attributed to a depreciable asset which was undervalued on Meadow Company's balance sheet and which has ten years useful life remaining. For the year ended December 31, 2017, Meadow Company reported net income of P540,000 and paid cash dividends of P180,000 on its ordinary.

Question 1: If Horizon Company uses the fair value model to account for its investment and the investment has fair value of P2,400,000 on December 31, 2017, what total amount of income and other revenue from investment should Horizon Company disclosed in its December 31, 2017 profit or loss?

Reference no: EM132549852

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