15. On January 1, 2023, Magnificent Company purchased 30% of the outstanding ordinary shares of Wondrous Company. During the current year, Wondrous Company reported net income of P5,880,000 and distributed dividends of P2,520,000. The carrying amount of the investment at year-end was P4,480,000. What is the purchase price paid for the investment? a. 1,120,000 b. 3,472,000 C. 5,488,000 d. 7,840,000

15. On January 1, 2023, Magnificent Company purchased 30% of the outstanding ordinary shares of Wondrous Company. During the current year, Wondrous Company reported net income of P5,880,000 and distributed dividends of P2,520,000. The carrying amount of the investment at year-end was P4,480,000. What is the purchase price paid for the investment? a. 1,120,000 b. 3,472,000 C. 5,488,000 d. 7,840,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 11MCQ

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