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 for trading purposes. At December 31, 2021, Goliath ordinary shares are selling at P180/share. During the year 2022, David 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. How much unrealized holding gain 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 for trading purposes. At December 31, 2021, Goliath ordinary shares are selling at P180/share. During the year 2022, David 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. How much unrealized holding gain should David report in profit or loss for the year 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 for trading purposes. At December 31, 2021, Goliath ordinary shares are selling at P180/share. During the year 2022, David 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.
How much unrealized holding gain should David report in profit or loss for the year 2022?
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