James Company issued shares as consideration for the purchase of inventory on January 1, 2020. The inventory was eventually sold on December 31, 2020. The value of the inventory on January 1, 2019 was P3,000,000 and this value was unchanged up to the date of sale. The sale proceeds amounted to P5,000,000. The shares issued have a market value of P3,200,000. How much is the gross profit from the sale of the inventory on December 31, 2019?
James Company issued shares as consideration for the purchase of inventory on January 1, 2020. The inventory was eventually sold on December 31, 2020. The value of the inventory on January 1, 2019 was P3,000,000 and this value was unchanged up to the date of sale. The sale proceeds amounted to P5,000,000. The shares issued have a market value of P3,200,000. How much is the gross profit from the sale of the inventory on December 31, 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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James Company issued shares as consideration for the purchase of inventory on January 1, 2020. The inventory was eventually sold on December 31, 2020. The value of the inventory on January 1, 2019 was P3,000,000 and this value was unchanged up to the date of sale. The sale proceeds amounted to P5,000,000. The shares issued have a market value of P3,200,000. How much is the gross profit from the sale of the inventory on December 31, 2019?
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