During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares at P150 per share, plus transaction costs of P4,000. The shares acquired are for trading purposes. At December 31, 2021, Pak ordinary shares are selling at P180/share. During the year 2022, Pal sold 400 shares at P195/share incurring P2,000 transaction costs on the sale. On December 31, 2022, the equity securities have fair value of P200/share. At what amount should the equity securities be reported at December 31, 2022?
During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares at P150 per share, plus transaction costs of P4,000. The shares acquired are for trading purposes. At December 31, 2021, Pak ordinary shares are selling at P180/share. During the year 2022, Pal sold 400 shares at P195/share incurring P2,000 transaction costs on the sale. On December 31, 2022, the equity securities have fair value of P200/share. At what amount should the equity securities be reported at December 31, 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares at P150 per share, plus transaction costs of P4,000. The shares acquired are for trading purposes. At December 31, 2021, Pak ordinary shares are selling at P180/share. During the year 2022, Pal sold 400 shares at P195/share incurring P2,000 transaction costs on the sale. On December 31, 2022, the equity securities have fair value of P200/share.
At what amount should the equity securities be reported at December 31, 2022?
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