Inn Corporation had 30,000 ordinary shares of NPA Company which were acquired during Year 2 for a total consideration o P1,800,000, including P30,000 directly attributable costs Th shares were held for some anticipated long-term benefits and are not intended for immediate sale. Inn Corporation exercised its option to recognize the change in the equity investments' fair value through other comprehensive income. 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: At what amount should the investment be shown on December 31, Year 3 statement of financial position?

Inn Corporation had 30,000 ordinary shares of NPA Company which were acquired during Year 2 for a total consideration o P1,800,000, including P30,000 directly attributable costs Th shares were held for some anticipated long-term benefits and are not intended for immediate sale. Inn Corporation exercised its option to recognize the change in the equity investments' fair value through other comprehensive income. 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: At what amount should the investment be shown on December 31, Year 3 statement of financial position?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

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Inn Corporation had 30,000 ordinary shares of NPA Company
which were acquired during Year 2 for a total consideration o
P1,800,000, including P30,000 directly attributable costs, Th
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.
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:
At what amount should the investment be shown on
December 31, Year 3 statement of financial position?

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