In 2021, Milka Company purchased an investment in equity securities. The related data of December 31, 2021: Security No. of shares Initial Cost Fair value Transaction cost A 6,000 P300,000 P295,000 P15,000 B 8,000 280,000 260,000 20,000 C 10,000 400,000 458,200 20,000 The entity sold 2,400 shares of Security B on January 5, 2022, for P82,500. If measured at FVOCI, how much is the net effect on retained earnings in 2022?
In 2021, Milka Company purchased an investment in equity securities. The related data of December 31, 2021: Security No. of shares Initial Cost Fair value Transaction cost A 6,000 P300,000 P295,000 P15,000 B 8,000 280,000 260,000 20,000 C 10,000 400,000 458,200 20,000 The entity sold 2,400 shares of Security B on January 5, 2022, for P82,500. If measured at FVOCI, how much is the net effect on retained earnings in 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2021, Milka Company purchased an investment in equity securities.
The related data of December 31, 2021:
Security No. of shares Initial Cost Fair value Transaction cost
A 6,000 P300,000 P295,000 P15,000
B 8,000 280,000 260,000 20,000
C 10,000 400,000 458,200 20,000
The entity sold 2,400 shares of Security B on January 5, 2022, for P82,500.
If measured at FVOCI, how much is the net effect on retained earnings in 2022?
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