Problem
On January 1, 20X1, Charlie Company acquired 10,000 shares representing a 10% interest in Ron Company's 100,000 outstanding shares for P3.2 million. The investment was initially classified as trading securities. In 2031, Ron reported profits of P20 million and declared and paid cash dividends of P4 million. The fair value of the shares on December 31, 2011 is P340 per share. As of December 31, 20311, the trading securities have a carrying amount of P3.4 million, equal to fair value. [in July 1, 2012, the entity acquired additional 15,000 shares at their fair value P230 per share resulting to an increase in ownership interest over Fion. The transaction did not give rise to goodwill or negative goodwill. In 20x2, Hon reported profit 5 of P24 million, of which, P16 million were earned in the second half of the year. In addition, Ron declared and paid dividends of P4 million on December 31, acts. The Hon shares have a quoted price of P350 per share on December 31, acute.
Task
A. How much is the carrying amount of the investment in associate on July 1, 20x2?
B. How much is the re measurement gain or loss? Specify if the result is gain or loss.
C. How much is the share in profit of the associate in euro?
D. How much is the carrying amount of the investment in associate on December 31, 20x2?|