Problem 1 Data pertaining to dividends from BOF Companys ordinary share investments for the year 2012 follow:

On October 1, BOF received 600,000 liquidating dividend from Jan Di Company. BOF owns a 10% interest in Jan Di Company. BOF owns a 20% interest in Jun Pyo Company which declared and paid a 4,000,000 cash dividend to shareholders on December 31,2012. On December 1, BOF received from JI Hoo Company a dividend in kind of one share of Woo Bin Company for every 4 of Ji Hoo Company shares held. BOF holds 100,000 Ji Hoo Company shares which have a market price of 50 per share on December 1. The market price of Woo Bin Company share is 10.

QUESTION: What amount should BOF report as dividend income in it 2012 statement of comprehensive income. Probelem 2 RNB Company holds ordinary shares of EMD, Inc. acquired as follows: Lot A (August 16,2010) Lot B (july 1,2011) 750 shares 1,250 shares 67,500 118,750

In 2012, RNB received 2000 rights to purchase EMD ordinary shares at 120 per share. 4 rights are required to purchase one share. At issue date, rights are selling at 4 each. RNB exercised 1,000 rights nd sold all other rights at 4.50 each. QUESTION: What is the cost per share of the investment acquired through the exercise of share rights. Problem 3 Manny Company bought 20 % of anothers entitys ordinary shares on January 1,2011 for 5,000,000. Carrying amount of investees net assets at purchase date totaled 16,000,000. Fair value and carrying amounts were the same for all items except for land and inventory, for which the fair values exceed their carrying amounts by 3,000,000 and 1000,000 respectively. Only half of the inventory was sold during 2011. Goodwill if any has indefinite life. During 2011, the investee reported net income of 4,000,000. Manny received 300,000 cash dividend from the investee. QUESTION: What amount should Manny report as investment in associate on December 31,2011.