On January 1 2001, Coca Cola purchased 5,000,000 shares of the outstanding 25,000,000 ordinary shares of Royal at P20 per share. The following are the activity that has happened: - On December 31 2001, Royal declared a net income of P50,000,000 for the year. A memo issuing cash dividends to all shareholders has been sent out. - On December 31 2002, Royal declared a net loss of P10,000,000.00 What is Coca Cola's “Investment in Associate” balance in Royal on 31 December 31 2022?
1. On January 1 2001, Coca Cola purchased 5,000,000 shares of the outstanding 25,000,000
ordinary shares of Royal at P20 per share. The following are the activity that has happened:
- On December 31 2001, Royal declared a net income of P50,000,000 for the year. A
memo issuing cash dividends to all shareholders has been sent out.
- On December 31 2002, Royal declared a net loss of P10,000,000.00
What is Coca Cola's “Investment in Associate” balance in Royal on 31 December 31 2022?
2. On January 1 2020, Philippine Airlines purchased 20% of Cebu Pacific's total outstanding
ordinary shares for two tenths of a billion peos. Net assets of the investee were fairly valued
except for one of its BUILDINGS, has a fair value of P5,000,000 greater than its carrying
amount. The total carrying amount of all assets is P900,00,000.
Assuming the building still has a remaining life of 10 years, how much “INVESTMENT
INCOME” is debited to amortize the excess of cost for the year 2020?
3. On January 1, 2019, Tesla purchased 100,000 shares of Coinbase, which is a tenth of the
available ordinary shares for P1m.
- On December 31 2019, Coinbase declared a profit of P10,000,000
- Coinbase issues a memo to its shareholders that itll be issuing share dividends for the
year
- On December 31 2020, Coinbase declared a loss of P5,000,000
- Coinbase issues a memo to its shareholders that itll be issuing a total of P1m in cash
dividends for the year
- On April 1 2021, Tesla sells 80,000 of its shares in Coinbase for P20 each
Using the cost method, find Tesla’s gain/loss in its investment on April 1 2021.
Assume Tesla did not sell any shares in April 2021,
- On December 31 2021, Coinbase declared a net income of P50,000,000
- Issued a memo that share dividends will be issued
- On January 31 2022, Tesla sells all of its shares at P5 each
What is Tesla’s gain/loss in investment?
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