- What is the investment carrying amount at December 31, 2021?A. P1,920,000B. P1,790,000C. P1,730,000D. P1,700,000 - Assume the excess of acquisition cost over the underlying equity acquired is due to a piece of equipment with remaining life of 5 years on the date of investment acquisition, and a straight-line depreciation basis, whatis the investment carrying amount at December 31, 2021?A. P1,920,000B. P1,790,000C. P1,745,000D. P1,730,000 N. On March 31, 2021, Gray Company purchased 120,000 ordinary shares of Len Company for P1,700,000, representing30% of Len Company's outstanding ordinary shares and an underlying equity of P1,400,000 in Len Company's netassets on that date. The excess of the acquisition cost over the equity acquired cannot be attributed to any tangibleasset. As a result of Gray's 30% ownership of Len Company, Gray has the ability to exercise significant influence overLen Company's financial and operating policies.On March 1, June 1, September 1 and December 1, all of 2021, Len Company paid quarterly dividend of P0.50 perordinary share on each of these dates. Len Company's profit for the year ended December 31, 2021 was P1,200,000that was earned evenly throughout the year. At December 31, 2021, each ordinary share of Len Company was sellingat P16.

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Description: - What is the investment carrying amount at December 31, 2021?A. P1,920,000B. P1,790,000C. P1,730,000D. P1,700,000 - Assume the excess of acquisition cost over the underlying equity acquired is due to a piece of equipment with remaining life of 5 yea

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What is the investment carrying amount at December 31, 2021? A. P1,920,000 B. P1,790,000 C. P1,730,000 D. P1,700,000 - Assume the excess of acquisition cost over the underlying equity acquired is due to a piece of equipment with remaining life of 5 years on the date of investment acquisition, and a straight-line depreciation basis, what is the investment carrying amount at December 31, 2021? A. P1,920,000 B. P1,790,000 C. P1,745,000 D. P1,730,000

What is the investment carrying amount at December 31, 2021? A. P1,920,000 B. P1,790,000 C. P1,730,000 D. P1,700,000 - Assume the excess of acquisition cost over the underlying equity acquired is due to a piece of equipment with remaining life of 5 years on the date of investment acquisition, and a straight-line depreciation basis, what is the investment carrying amount at December 31, 2021? A. P1,920,000 B. P1,790,000 C. P1,745,000 D. P1,730,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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On March 31, 2020, Gray Company purchased 120,000 ordinary shares of Len Company for P 1,700,000, representing 30% of Len’s outstanding ordinary shares and an underlying equity of P1,400,000 in Len's net assets on January 2, 2020. The excess of the acquisition cost over the equity acquired cannot be attributed to any tangible asset As a result of Gray's 30% ownership of Len, Gray has the ability to exercise significant influence over Len's financial and operating policies.On March 1, June 1. September 1 and December 1, all of 2020, Len paid quarterly dividend of P0.50 per ordinary share on each of these dates. Len's profit for the year ended December 31, 2020 was P1,200,000, that was earned evenly throughout the year. At December 31, 2020, each ordinary share of Len Company was selling at P16. Assuming the excess of acquisition cost over the underlying equity acquired is attributable to a piece of equipment with a remaining life of 5 years on the date of investment acquisition, and…
On March 31, 2020, Gray Company purchased 120,000 ordinary shares of Len Company for P 1,700,000, representing 30% of Len’s outstanding ordinary shares and an underlying equity of P1,400,000 in Len's net assets on January 2, 2020. The excess of the acquisition cost over the equity acquired cannot be attributed to any tangible asset As a result of Gray's 30% ownership of Len, Gray has the ability to exercise significant influence over Len's financial and operating policies.On March 1, June 1. September 1 and December 1, all of 2020, Len paid quarterly dividend of P0.50 per ordinary share on each of these dates. Len's profit for the year ended December 31, 2020 was P1,200,000, that was earned evenly throughout the year. At December 31, 2020, each ordinary share of Len Company was selling at P16.1. What is Gray's income from associates for the year 2020? a. P360,000 b. P330,000 c. P300,000 d. P270,000 2. What is the investment carrying amount at December 31, 2020? a.…
On March 31, 2020, Gray Company purchased 120,000 ordinary shares of Len Company for P 1,700,000, representing 30% of Len’s outstanding ordinary shares and an underlying equity of P1,400,000 in Len's net assets on January 2, 2020. The excess of the acquisition cost over the equity acquired cannot be attributed to any tangible asset As a result of Gray's 30% ownership of Len, Gray has the ability to exercise significant influence over Len's financial and operating policies.On March 1, June 1. September 1 and December 1, all of 2020, Len paid quarterly dividend of P0.50 per ordinary share on each of these dates. Len's profit for the year ended December 31, 2020 was P1,200,000, that was earned evenly throughout the year. At December 31, 2020, each ordinary share of Len Company was selling at P16.What is the investment carrying amount at December 31, 2020? a. P1,920,000 b. P1,790,000 c. P1,730,000 d. P1,700,000
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