During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150 per share, plus transaction costs of P4,000. The shares acquired are designated as at fair value through other comprehensive income. At December 31, 2021, Goliath ordinary shares are selling at P180/share. During the year 2022, David sold 400 shares at P195/share. On December 31, 2022, the equity securities have fair value of P200/share. How much gain on sale should David report in profit or loss for the year 2022
During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150 per share, plus transaction costs of P4,000. The shares acquired are designated as at fair value through other comprehensive income. At December 31, 2021, Goliath ordinary shares are selling at P180/share. During the year 2022, David sold 400 shares at P195/share. On December 31, 2022, the equity securities have fair value of P200/share. How much gain on sale should David report in profit or loss for the year 2022
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150 per share, plus transaction costs of P4,000. The shares acquired are designated as at fair value through other comprehensive income. At December 31, 2021, Goliath ordinary shares are selling at P180/share. During the year 2022, David sold 400 shares at P195/share. On December 31, 2022, the equity securities have fair value of P200/share.
How much gain on sale should David report in profit or loss for the year 2022
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