On July 1, 2021, Orange Company, purchased 10,000 ordinary shares of Juce Corporation at P150 per share. At the time of the purchase, Juce Corporation has 50,000 outstanding shares with a total shareholders’ equity of P7,500,00. With this purchase, Orang has the ability to exercise significant influence over Juce. During the year 2021, Juce reported profit of P3,000,000 and declared and paid cash dividends of P50 per share. The fair value of Juce Corporation’s ordinary share at December 31, 2021 was P170 per share. At its December 31, 2021 statement of financial position, what amount of investment in Juce Corporation was reported by Orange company?
On July 1, 2021, Orange Company, purchased 10,000 ordinary shares of Juce Corporation at P150 per share. At the time of the purchase, Juce Corporation has 50,000 outstanding shares with a total shareholders’ equity of P7,500,00. With this purchase, Orang has the ability to exercise significant influence over Juce. During the year 2021, Juce reported profit of P3,000,000 and declared and paid cash dividends of P50 per share. The fair value of Juce Corporation’s ordinary share at December 31, 2021 was P170 per share. At its December 31, 2021 statement of financial position, what amount of investment in Juce Corporation was reported by Orange company?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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On July 1, 2021, Orange Company, purchased 10,000 ordinary shares of Juce Corporation at P150 per share. At the time of the purchase, Juce Corporation has 50,000 outstanding shares with a total shareholders’ equity of P7,500,00. With this purchase, Orang has the ability to exercise significant influence over Juce. During the year 2021, Juce reported profit of P3,000,000 and declared and paid cash dividends of P50 per share. The fair value of Juce Corporation’s ordinary share at December 31, 2021 was P170 per share. At its December 31, 2021
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