16. During Year One, Hancock Corporation buys 2,000 shares of Waltz Inc. for P34 per share. Hancock appropriately records this acquisition as an investment in trading securities because it plans to make a sale in the near future. In December of Year One, Waltz pays a P1 per share cash dividend to its owners. On the last day of December, the stock is selling on a stock exchange for P39 per share. What is the impact of these events on the income reported by Hancock for Year One? O a. No effect O b. Increase of P2,000 c. Increase of P10,000 d. Increase of P12,000

16. During Year One, Hancock Corporation buys 2,000 shares of Waltz Inc. for P34 per share. Hancock appropriately records this acquisition as an investment in trading securities because it plans to make a sale in the near future. In December of Year One, Waltz pays a P1 per share cash dividend to its owners. On the last day of December, the stock is selling on a stock exchange for P39 per share. What is the impact of these events on the income reported by Hancock for Year One? O a. No effect O b. Increase of P2,000 c. Increase of P10,000 d. Increase of P12,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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