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Company PPP Has a Share Investment In, and Controls Company

question 6

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Company PPP has a share investment in, and controls Company PPP (Owns 70% of the shares, purchased in 20X1) with a carrying amount of $200 000 at year end 20X4.Company QQQ reports an increase in owner's equity of $100 000 for the year ended 20X5 pays a cash dividend of $80 000 from this, of which Company PPP receives $56 000.Which journal entry will Company PPP process in respect of this investment, assuming that AASB 127.38A was not in effect during the period?

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Definitions:

Angiosperms

Angiosperms are a group of plants that bear flowers and produce seeds enclosed within a fruit.

Pollinators

Animals or agents that carry pollen from the male structures to female structures of plants, facilitating their sexual reproduction.

Cycads

Ancient seed plants with large, compound leaves and a stout trunk, known for their long evolutionary history.

Carpels

The repeatable units of the female reproductive organ of a flower, constituting the ovary, style, and stigma; involved in the development of fruit and seeds after fertilization.

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