Inn Corporation had 30,000 ordinary shares of NP which were acquired during Year 2 for a total consideration of P1,800,000, including P30,000 directly attributable costs. The shares were held for some anticipated long-term benefits and are not intended for immediate sale. Inn Corporation exercised ite option to recognize the change in the equity investments' fair value through other comprehensive income. Company On December 31, Year 2, the NPA shares were selling at P65 per share. In July Year 3, Inn Corporation received a 20% bonus issue. Subsequently during the year, it sold 15,000 shares at 70 per share. The fair value of NPA ordinary at December 31, Year 3 was P72 per share. REQUIRED: How much shall be reported as total income in profit or loss for Year 3 as a result of this investment?

Inn Corporation had 30,000 ordinary shares of NP which were acquired during Year 2 for a total consideration of P1,800,000, including P30,000 directly attributable costs. The shares were held for some anticipated long-term benefits and are not intended for immediate sale. Inn Corporation exercised ite option to recognize the change in the equity investments' fair value through other comprehensive income. Company On December 31, Year 2, the NPA shares were selling at P65 per share. In July Year 3, Inn Corporation received a 20% bonus issue. Subsequently during the year, it sold 15,000 shares at 70 per share. The fair value of NPA ordinary at December 31, Year 3 was P72 per share. REQUIRED: How much shall be reported as total income in profit or loss for Year 3 as a result of this investment?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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