What amount should gertrude report

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Reference no: EM132949213

Question

1. Gertrude, Inc. acquired 30% of North Company's voting shares for P 200,000 on January 2, 20x2. Gertrude's 30% interest in North gave Gertrude the ability to exercise significant influence over North's operating and financial policies. During 20x2, North earned P 80,000 and paid dividends of P 50,000. North reported earnings of P 100,000 for the six months ended June 30, 20x3 and P 200,000 for the year ended December 31, 20x3.

What amount should Gertrude report in its 20x2 statement of financial position as investment in Associate?

2. On January 2, 20x1 Rereina Corporation bought 15 percent of Sasha Corporation's capita; shares for P 60,000 and classified it as fair value through other comprehensive income securities. Sasha's profits for the years ended December 31, 20x1 and 20x2, were P 20,000 and P 100,000 respectively. During 20x2, Sasha declared a dividend of P 120,000. No dividends were declared in 20x1. On December 31, 20x2, the fair value of the Sasha's shares owned by Rereina had increased to P 90,000. How much should Rereina show in its 20x2 statement of financial performance as income from this investment?

Reference no: EM132949213

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