During 2020, Nishinoya Corporation 5,000 convertible preference shares of P100 par value per share for P 110 per share. One Preference share can be converted into three Ordinary shares of P 25 par value at the option of the preference shareholder. On December 31, 2020, when the market value of the Ordinary share was P40 per share, all of the Preference shares were converted. How much is the indicated gain(loss) as a result of the conversion?

During 2020, Nishinoya Corporation 5,000 convertible preference shares of P100 par value per share for P 110 per share. One Preference share can be converted into three Ordinary shares of P 25 par value at the option of the preference shareholder. On December 31, 2020, when the market value of the Ordinary share was P40 per share, all of the Preference shares were converted. How much is the indicated gain(loss) as a result of the conversion?

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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