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  3. 9.) on january 1, 2020, altruism company acquired

9.) On January 1, 2020, Altruism Company acquired 20% of the outstanding 100,000 ordinary shares...

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Accounting

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9.) On January 1, 2020, Altruism Company acquired 20% of the outstanding 100,000 ordinary shares of Z Company for P4,000,000. This investment gave Altruism the ability to exercise significant influence over Z Company. The acquisition cost is equal to the carrying amount of the net assets acquired. On December 31, 2020, Altruism received a 25% share dividend from Z Company Company reported a net income of P5,000,000 in 2020 and a net loss of P1,200,000 in 2021. Z Company paid 2,000,000 cash dividend. What amount should be reported as investment in associate at the end of 2021

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