‘Sian 38.10 (Quetion 1 Answer ¢ Aer neq 0% 600.0) cess of cost Ero anaatetospaent ood 10% x 3,000,000) Question? Answer ‘Net income for erent yar ‘Unread profit on ending iventony Adjusednetincome Investors share (30% x 3 400,000) ‘Atmotzaton of exces of cost atbutble to equipment (90,0005) vestment income fr curent yeat Question 3 Answer e ‘Acgusion cost vestnet income for erent yer Cashavidend (30% x1 500,000) Refaluationsuplus 304 x2,000,000) Caryn amount of investment in associat 458 4.000209 (00.000 3a 020,000 Csn20 009 3,200,000 ‘40,000 450,000) 600,000 0 problem 3811 (AA) ‘Alpha Company aauired 20,000 shares of Beta Company o Sanus 12013 a 80 peta Coen SP ach ‘shares outstanding with a carrying aznount of 8.000.000. eee Te ieee btn cayenne i lof ea Company on uy, 2019 anioabioa ricns e Beta Company ecorded earings ofP360,000 and P3,900,000, Betoibant tan nea oP r for 2019 rd 300 apc and pg pes So ot ‘Alpha Compary ha 20-year stright lin for order eee, line amortcatonpoicy 1, Whatamountshouldbe eporedas investment income for2019? a. 900,000 ‘880,000 © 320,000 4 320{000, 2, Whatiethe carving amount ofthe inveetmentin associate on December 31,20197 2,980,000 ®. 7/960,000 © 3,300,000 2,060,000 3. Whatamount shouldbe reportedasinvestmentincome fr2020? a. 975,000 8. 995,000 955,000 935,000 4. What sth caning amount of the investmentin associate on December 31,2020? a 3,515,000 ‘6. 2:400,000 : 3,355,000 4 4'275;000 459