On January 1, 2020, Mickey Mouse Co. acquired 30,000 ordinary shares out of the 100,000 outstanding ordinary shares of Minnie Mouse Inc. for P5,000,000. Minnie Mouse’s assets and liabilities approximate their fair except for inventory which carrying amount was undervalued by P500,000; machinery is undervalued by P300,000. The remaining useful life of the machinery is 5-years. Minnie Mouse’s net assets has a book value of P10,000,000. On December 31, 2020, Minnie Mouse reported net income of P2,000,000 and declared and paid dividends of P800,000. On December 31, 2021, Minnie Mouse reported net income of P4,500,000 and declared and paid dividends of P1,600,000. How much is the carrying amount of Investment in Associate in 2021? What amount of dividend revenue should be reported for the current year?
On January 1, 2020, Mickey Mouse Co. acquired 30,000 ordinary shares out of the 100,000 outstanding ordinary shares of Minnie Mouse Inc. for P5,000,000. Minnie Mouse’s assets and liabilities approximate their fair except for inventory which carrying amount was undervalued by P500,000; machinery is undervalued by P300,000. The remaining useful life of the machinery is 5-years. Minnie Mouse’s net assets has a book value of P10,000,000.
On December 31, 2020, Minnie Mouse reported net income of P2,000,000 and declared and paid dividends of P800,000. On December 31, 2021, Minnie Mouse reported net income of P4,500,000 and declared and paid dividends of P1,600,000.
How much is the carrying amount of Investment in Associate in 2021?
What amount of dividend revenue should be reported for the current year?
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