CMU

Enrichment Learning Activity

Name: John Carlo C. Tolentino Date: February 15 2022

Year and Section: BSMA - 3A Instructor: Mr. Jefferson Cruz
Module #: 8 Topic: Separate Financial Statements

Directions: ANSWER PROBLEM 3 MULTIPLE CHOICE-COMPUTATIONAL ON YOUR BOOK NOS. 1-4 pp 379-380
(Show your solutions)

1. How much is the carrying amount of the investment in subsidiary in the December 31, 20x1 consolidated
financial statements? ₱0 The investment in a subsidiary is removed from the consolidated financial statements.

2. How much is the carrying amount of the investment in subsidiary in the December 31,20x1 separate financial
statements? ₱ 4,000,000 Investment in subsidiary (Zaskar, Inc.)- at cost

3. How much is the carrying amount of the investment in associate in the December 31, 20x1 separate financial
statements? ₱420,000 Investment in associate (Goat Co.)- at fair value

4. How much is the net investment income recognized in the 20x1 separate financial statements for the
investments referred to above? ₱1,060,000

(960,000 + 100,000) = 1,060,000

Investment in subsidiary (Zaskar Inc.)

Dividend revenue (₱1,200,000*80%) ₱960,000

Investment in associate (Goat Co.)

Dividend revenue (₱800,000*20%) ₱160,000
Unrealized gain on change in fair value (₱420,000- ₱400,000) 20,000
Transaction cost expensed immediately (80,000)
Net investment income ₱100,000

Investment in associate
(Alphabets, Co.)

SY2021-2022 1st Term Homework

 CMU
Enrichment Learning Activity

––
atatFFaaiir
vr vaallue on Dec. 31,
20x1ue on Dec. 31,
20x1
Investment in associate
(Alphabets, Co.)
––
atatFFaaiir
vr vaallue on Dec. 31,
SY2021-2022 1st Term Homework
 CMU
Enrichment Learning Activity

20x1ue on Dec. 31,

20x1
Investment in associate
(Alphabets, Co.)
––
atatFFaaiir
vr vaallue on Dec. 31,
20x1ue on Dec. 31,
20x1

SY2021-2022 1st Term Homework

 CMU
Enrichment Learning Activity

Investment in associate
(Alphabets, Co.)
––
atatFFaaiir
vr vaallue on Dec. 31,
20x1ue on Dec. 31,
20x1
Investment in associate
(Alphabets, Co.)

SY2021-2022 1st Term Homework

 CMU
Enrichment Learning Activity

––
atatFFaaiir
vr vaallue on Dec. 31,
20x1ue on Dec. 31,
20x1

SY2021-2022 1st Term Homework