Required:1. The carrying value of investment in King Inc. shares in 2019 is?2. How much should be reported another comprehensive income/loss in the statement of comprehensive income for 2019 in relation to the investments?Thank you! Please answer complete Problem 1:Prince Inc. acquired 100,000 ordinary shares of Queen Corp. for Php 5 per share and 250,000 ordinary sharesof King Inc. for Php 10 per share on January 2, 2018. Both Queen Corp. and King Inc. have 1,000,00 ordinaryshares outstanding. The book values of the net assets of Queen Corp. and King Inc. on the acquisition datewere Php 4,500,000 and Php 9,000,000, respectively. The fair values of the net assets of both Queen Corp.and King Inc. approximated their book values on the acquisition date, except for one of King's depreciableasset having a remaining life of 5 years, which was understated by Php 500,000.Both securities are being held as long term investments. Your investigation revealed the following changes inRetained Earnings of Queen Corp. ad King Inc. for 2018 and 2019 based on their respective audited financialstatements:Queen Corp.King Inc.(350,000)Retained Earnings (Deficit) 1/1/18Cash Dividends, 20182,000,000(250,000)Profit for 2018400,000650,000Retained Earnings 12/31/2018Cash Dividends, 2019Profit for 20192,150,000300,000(300,000)(100,000)600,000250,000Retained Earnings, 12/31/20192,450,000450,000Market values of shares: 12/31/2018Market values of shares: 12/31/2019Php 7.00 per shPhp 6.50 per shPhp 12.00 per shPhp 15.00 per shRequired:1. The carrying value of investment in King Inc. shares in 2019 is?2. How much should be reported another comprehensive income/loss in the statement ofcomprehensive income for 2019 in relation to the investments?

Comprehensive income/loss is a term used to describe a more inclusive measure of financial…

The carrying value of investment in King Inc. shares in 2019 is? 2. How much should be reported another comprehensive income/loss in the statement of comprehensive income for 2019 in relation to the investments? Thank you! Please answer complete

The carrying value of investment in King Inc. shares in 2019 is? 2. How much should be reported another comprehensive income/loss in the statement of comprehensive income for 2019 in relation to the investments? Thank you! Please answer complete

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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