A company buys ten shares of securities at P2.000 each on December 31, 2031. The securities are classified to be su
A company buys ten shares of securities at P2.000 each on December 31, 2031. The securities are classified to be su
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company buys ten shares of securities at P2.000 each on December 31, 2031. The securities are
classified to be subsequently measured at fair value through other comprehensive income (FVOCT). The
fair value of the securities increases to P2.500 on December 31, 20x2, and to P2,750 on December 31,
20x3 On December 31, 20x3. the company sells the securities Assume no dividends are paid and that the
company has a tax rate of 30%. What is the amount of the reclassification adjustment for other
comprehensive income on December 31, 20x3?
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