On January 1, 2020, Entity A, a public entity, and Entity B, a public entity,...
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On January 1, 2020, Entity A, a public entity, and Entity B, a public entity, incorporated Entity C which has its fiscal and operational autonomy. The contractual agreement of the incorporating entities provided that the decisions on relevant activities of Entity Cwill require the unanimous consent of both entities. Entity A and Entity B will have rights to the net assets of Entity C Entity A and Entity B invested P1,000,000 and P1.500,000, respectively, equivalent to 40:60 capital interest of Entity C. The financial statements of Entity provided the following data for its two-year operation: 2020 2021 Net Income (Loss) Dividends Declared 200,000 100,000 (2,000,000) What is the balance of Investment in Entity C to be reported by Entity A in its Statement of Financial Position on December 31, 2021
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