Inc. purchased equity securities during the year that is specifically designated as trading securities. Given below are data regarding the securities. May 18, 2019 – Purchased ABC Common Shares for P500,000 including transaction costs incurred of P5,000. Number of shares acquired is 50,000 shares out of a total outstanding share of 500,000 May 24, 2019 - Purchased DEF Common Shares for P180.000. No transaction costs were incurred in the purchase due to its bulk nature. Number of shares acquired is 1,000 shares. The following are the transaction that took effect during the year: June 18, 2019 - ABC declared stock dividends of 10%. DEF declared and paid cash dividends of P9 per share. July 14, 2019 stockholders. ABC declared and paid cash totaling to dividends of P300,000 for all its July 19, 2019 - DEF declared a stock split up of 3 for 1. July 24, 2019 - ABC declared stock split down of 2 for 1. December 1, 2019 - NDS received cash dividends of PO.40 per share from ABC. December 18, 2019 - DEF declared cash dividends of P2 per share. At the end of 2019 Market Values per share were as follows: Bid Asked ABC Shares 5.4 5 DEF Shares 175.5 180 At the end of 2019, the investment was reclassified into Financial Asset through other comprehensive income. On January 1, 2020, the date of reclassification, the market values were as follows: Bid Asked ABC Shares 6. 5.5 DEF Shares 180 178
Inc. purchased equity securities during the year that is specifically designated as trading securities. Given below are data regarding the securities. May 18, 2019 – Purchased ABC Common Shares for P500,000 including transaction costs incurred of P5,000. Number of shares acquired is 50,000 shares out of a total outstanding share of 500,000 May 24, 2019 - Purchased DEF Common Shares for P180.000. No transaction costs were incurred in the purchase due to its bulk nature. Number of shares acquired is 1,000 shares. The following are the transaction that took effect during the year: June 18, 2019 - ABC declared stock dividends of 10%. DEF declared and paid cash dividends of P9 per share. July 14, 2019 stockholders. ABC declared and paid cash totaling to dividends of P300,000 for all its July 19, 2019 - DEF declared a stock split up of 3 for 1. July 24, 2019 - ABC declared stock split down of 2 for 1. December 1, 2019 - NDS received cash dividends of PO.40 per share from ABC. December 18, 2019 - DEF declared cash dividends of P2 per share. At the end of 2019 Market Values per share were as follows: Bid Asked ABC Shares 5.4 5 DEF Shares 175.5 180 At the end of 2019, the investment was reclassified into Financial Asset through other comprehensive income. On January 1, 2020, the date of reclassification, the market values were as follows: Bid Asked ABC Shares 6. 5.5 DEF Shares 180 178
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How much is the dividend income recognized for 2019?
56,000
99,000
109,000
Zero
None of the choices
Transcribed Image Text:NDS Inc. purchased equity securities during the year that is specifically designated as trading securities.
Given below are data regarding the securities.
May 18, 2019 – Purchased ABC Common Shares for P500,000 including transaction costs incurred
of P5,000. Number of shares acquired is 50,000 shares out of a total outstanding share of 500,000
May 24, 2019 - Purchased DEF Common Shares for P180,000. No transaction costs were incurred
in the purchase due to its bulk nature. Number of shares acquired is 1,000 shares.
The following are the transaction that took effect during the year:
June 18, 2019 - ABC declared stock dividends of 10%. DEF declared and paid cash dividends of
P9 per share.
July 14, 2019
stockholders.
July 19, 2019 - DEF declared a stock split up of 3 for 1.
July 24, 2019 - ABC declared stock split down of 2 for 1.
December 1, 2019 – NDS received cash dividends of PO.40 per share from ABC.
December 18, 2019 – DEF declared cash dividends of P2 per share.
ABC declared and paid cash totaling to dividends of P300,000 for all its
At the end of 2019 Market Values per share were as follows:
Bid
Asked
ABC Shares
5.4
5
DEF Shares
175.5
180
At the end of 2019, the investment was reclassified into Financial Asset through other comprehensive
income. On January 1, 2020, the date of reclassification, the market values were as follows:
Bid
Asked
ABC Shares
6
5.5
DEF Shares
180
178
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