On January 1, 2002, Toto Company paid ₱500,000 for 20,000 shares of Egay Company’s ordinary shares and classified these shares as held for trading securities. Young does not have the ability to exercise significant influence over Egay Company. Egay declared and paid a dividend of ₱.50 a share to its stockholders during 2002. Egay reported net income of ₱260,000 for the year ended December 31, 2002. The fair value of Egay Co.'s stock on December 31, 2002 is ₱27 per share. What is the net asset amount (which includes both investments and any related market adjustments) attributable to the investment in Egay that will be included on Toto’s balance sheet at December 31, 2002? 530,000 540,000 c. 569,000 d. 579,000
On January 1, 2002, Toto Company paid ₱500,000 for 20,000 shares of Egay Company’s ordinary shares and classified these shares as held for trading securities. Young does not have the ability to exercise significant influence over Egay Company. Egay declared and paid a dividend of ₱.50 a share to its stockholders during 2002. Egay reported net income of ₱260,000 for the year ended December 31, 2002. The fair value of Egay Co.'s stock on December 31, 2002 is ₱27 per share. What is the net asset amount (which includes both investments and any related market adjustments) attributable to the investment in Egay that will be included on Toto’s balance sheet at December 31, 2002? 530,000 540,000 c. 569,000 d. 579,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- On January 1, 2002, Toto Company paid ₱500,000 for 20,000 shares of Egay Company’s ordinary shares and classified these shares as held for trading securities. Young does not have the ability to exercise significant influence over Egay Company. Egay declared and paid a dividend of ₱.50 a share to its stockholders during 2002. Egay reported net income of ₱260,000 for the year ended December 31, 2002. The fair value of Egay Co.'s stock on December 31, 2002 is ₱27 per share. What is the net asset amount (which includes both investments and any related market adjustments) attributable to the investment in Egay that will be included on Toto’s balance sheet at December 31, 2002?
- 530,000 540,000 c. 569,000 d. 579,000
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