Cloud Co. acquired an investment in Sky Co., a joint venture, for P100,000, incurring transaction costs of P1,000. Cloud Co. determined that it has joint control over Sky. Cloud Co. uses the PFRS for SMES and elects the cost model for its investments in joint ventures. The investment's fair values were P102,000, P110,000 and P90,000 on December 31, 20x1, 20x2 and 20x3, respectively. Costs to sell were estimated at P4,000 throughout. Cloud Co. recognizes in its profit or loss which of the following amounts? gain (loss) 20x1 20x2 20x3 a. 0 b. (1,000) с. (3,000) d. (3,000) 8,000 8,000 3,000 (20,000) (20,000) (15,000)

Cloud Co. acquired an investment in Sky Co., a joint venture, for P100,000, incurring transaction costs of P1,000. Cloud Co. determined that it has joint control over Sky. Cloud Co. uses the PFRS for SMES and elects the cost model for its investments in joint ventures. The investment's fair values were P102,000, P110,000 and P90,000 on December 31, 20x1, 20x2 and 20x3, respectively. Costs to sell were estimated at P4,000 throughout. Cloud Co. recognizes in its profit or loss which of the following amounts? gain (loss) 20x1 20x2 20x3 a. 0 b. (1,000) с. (3,000) d. (3,000) 8,000 8,000 3,000 (20,000) (20,000) (15,000)

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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