On January 1, 2020, Chico Company purchased 10% of Winona Company’s outstanding ordinary shares for P200,000. Chico Company is the largest single shareholder in Winona Company and the officers of Chico Company are the majority members of Winona Company’s board of directors. Winona Company reported a profit of P1,500,000 for 2020 and paid dividends of P900,000. The market value of Winona Company’s ordinary shares on December 31, 2020, is P265,000. In its December 31, 2020, statement of financial position, what amount should Chico Company report as an investment in Winona Company?
On January 1, 2020, Chico Company purchased 10% of Winona Company’s outstanding ordinary shares for P200,000. Chico Company is the largest single shareholder in Winona Company and the officers of Chico Company are the majority members of Winona Company’s board of directors. Winona Company reported a profit of P1,500,000 for 2020 and paid dividends of P900,000. The market value of Winona Company’s ordinary shares on December 31, 2020, is P265,000. In its December 31, 2020, statement of financial position, what amount should Chico Company report as an investment in Winona Company?
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 14RE
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On January 1, 2020, Chico Company purchased 10% of Winona Company’s outstanding ordinary shares for P200,000. Chico Company is the largest single shareholder in Winona Company and the officers of Chico Company are the majority members of Winona Company’s board of directors. Winona Company reported a profit of P1,500,000 for 2020 and paid dividends of P900,000. The market value of Winona Company’s ordinary shares on December 31, 2020, is P265,000. In its December 31, 2020,
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