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?

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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