Problem 38-4 (RS) a ov oa ste otantn com ur a FPO Schpay e 32 ; Soran mer : ard eminorsoxo ssa 2019 oa oie ig 0.080 ; Refine 2019 ae eins earings, ester 312009 Ey eee cake 200 ae emit coins Decent] 220 on Wharste cing arountofteiavestmentinssociteon Deen, 31,2007 3,600,000 3,930,000 ©, 3,780,000 @ 4080,000 Solution 38-4 Answere Acguisiion cost (3,000 120) Defiitonlansary 1, 2019 (30% x 500,000) Carrying amount of investment Ianuary 1, 2019 [Net income for 2019 30% x 700,000) 20pm Net income for 2020 (30% x 00,000) aq (Cash dividend on 12/31/2020 (30% 40,000) (tzu 70000 Canying amount of investeat - December 31 2020 Simple approach Action con sina Share wetted earnings — Dace sf lel arin Dente 31,200 Caring mews of sine December 31,2020, 3.78082 46 problem 385 (IFRS) ‘Chus Company scquie 4% itre i Ch Cafe sees 40 inten im Company for Phctpony is presented elon.” 1 stseholders cou of im i January December 31 Seithaton pias somo 398 etnies earings ‘oon 1300600 nina i mii ig 5 a 2 fa ig Seopa oe ke eae aetna a See aes cre mad ‘hea he go he sgl Seeirae inert esas tee plement sta es paid be tnreased by P200,000. = Saree ae December 31,20197 + 1BB ee 3 RS Socio = seni va state eu 2 See ge gem CES Revahnionsurplas (40% 3 130,000) ‘Carrying mount of investment December 31,2019 220000 1 forth difference in dereiton tbo. nai at ssthe flow of id ti tlt i ao “There is mo need toads both ents have chose bnets asthe assets are consred then there is “a