Cblue Company owned 900,000 shares of Flight Company. On December 31, 2004, when the investment had a carrying amount of P5 per share, the entity declared these shares to the shareholders as a dividend to be distributed in 2005. Cblue originally paid P8 for each share. Flight has 3,000,000 shares issued and outstanding which are traded on a national stock exchange. The quoted market price for a Flight share was P7 on the declaration date and P9 on the distribution date in 2005. What amount should be recognized as gain from distribution of property dividend in 2005?
Cblue Company owned 900,000 shares of Flight Company. On December 31, 2004, when the investment had a carrying amount of P5 per share, the entity declared these shares to the shareholders as a dividend to be distributed in 2005. Cblue originally paid P8 for each share. Flight has 3,000,000 shares issued and outstanding which are traded on a national stock exchange. The quoted market price for a Flight share was P7 on the declaration date and P9 on the distribution date in 2005. What amount should be recognized as gain from distribution of property dividend in 2005?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cblue Company owned 900,000 shares of Flight Company. On December 31, 2004, when the investment had a carrying amount of P5 per share, the entity declared these shares to the shareholders as a dividend to be distributed in 2005. Cblue originally paid P8 for each share. Flight has 3,000,000 shares issued and outstanding which are traded on a national stock exchange. The quoted market price for a Flight share was P7 on the declaration date and P9 on the distribution date in 2005. What amount should be recognized as gain from distribution of property dividend in 2005?
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