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16. Wondrous Company acquired 40,000 ordinary shares on September 30 for P6,600,000 to be held for trading. On December 1, the investee distributed a 10% ordinary stock dividend when the market price of the share was P250. On December 31, the entity sold 4,000 shares for P1,000,000. What amount should be reported as gain on sale of investment in the current year? a. 340,000 b. 400,000 C. 500,000 d. 600,000

16. Wondrous Company acquired 40,000 ordinary shares on September 30 for P6,600,000 to be held for trading. On December 1, the investee distributed a 10% ordinary stock dividend when the market price of the share was P250. On December 31, the entity sold 4,000 shares for P1,000,000. What amount should be reported as gain on sale of investment in the current year? a. 340,000 b. 400,000 C. 500,000 d. 600,000

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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16. Wondrous Company acquired 40,000 ordinary shares on September 30 for P6,600,000 to be held for trading. On December 1, the investee distributed a 10% ordinary stock dividend when the market price of the share was P250. On December 31, the entity sold 4,000 shares for P1,000,000. What amount should be reported as gain on sale of investment in the current year? a. 340,000 ale8.3740 b. 400,000 c. 500,000 d. 600,000
Transcribed Image Text:16. Wondrous Company acquired 40,000 ordinary shares on September 30 for P6,600,000 to be held for trading. On December 1, the investee distributed a 10% ordinary stock dividend when the market price of the share was P250. On December 31, the entity sold 4,000 shares for P1,000,000. What amount should be reported as gain on sale of investment in the current year? a. 340,000 ale8.3740 b. 400,000 c. 500,000 d. 600,000
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