24. On January 1, 2023, Hannah Company purchased 10% of Esther Company's outstanding ordinary shares for P7,400,000. Hannah Company is the largest single shareholder in Esther Company and Hannah Company's officers are a majority on Esther Company's board of directors. Esther Company reported net income of P9,250,000 for the current year and paid dividends of P2,775,000. On December 31, 2023, what amount should the investment be reported? a. 7,122,500 b. 7,400,000 8,047,500 d. 8,325,000

24. On January 1, 2023, Hannah Company purchased 10% of Esther Company's outstanding ordinary shares for P7,400,000. Hannah Company is the largest single shareholder in Esther Company and Hannah Company's officers are a majority on Esther Company's board of directors. Esther Company reported net income of P9,250,000 for the current year and paid dividends of P2,775,000. On December 31, 2023, what amount should the investment be reported? a. 7,122,500 b. 7,400,000 8,047,500 d. 8,325,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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