P4. On December 31, 2021, the carrying amount of the investment isABC Company purchased 25% of the ordinary shares of CBA Company.The investment in associate has a carrying amount of P1,000,000 at December 31, 2019.For years 2020-2023, CBA Company didi not declare any dividends.CBA Company reported the following results of operations:Profit/ (Loss)(3,000,000)20202021 (1,500,000)2022500,00020231,000,000

Solution Concept Investment In associate The investment in associate is recorded at cost on initial…

. On December 31, 2021, the carrying amount of the investment is BC Company purchased 25% of the ordinary shares of CBA Company. ne investment in associate has a carrying amount of P1,000,000 at December 31, 2 or years 2020-2023, CBA Company didi not declare any dividends. BA Company reported the following results of operations: Profit/ (Loss) 2020 (3,000,000) 2021 (1,500,000) 2022 500,000 2022 000.000

. On December 31, 2021, the carrying amount of the investment is BC Company purchased 25% of the ordinary shares of CBA Company. ne investment in associate has a carrying amount of P1,000,000 at December 31, 2 or years 2020-2023, CBA Company didi not declare any dividends. BA Company reported the following results of operations: Profit/ (Loss) 2020 (3,000,000) 2021 (1,500,000) 2022 500,000 2022 000.000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 11MCQ

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