On December 31, 2020, GHI Corporation holds 50,000 shares of Harry Company with market value of P6,300,000 and originally acquired at a total amount of P5,900,000. The investment is classified as fair value through other comprehensive income. On March 1, 2021, a 3-for-2 stock split was completed by Harry Company. On September 30, 2021, GHI Corp. sold 21,000 shares of Harry Company for its fair value of P73/share. On December 31, 2021, a share of Harry Company has a fair value of P75/share. What is the balance of Unrealized Gain or Loss - Other Comprehensive Income to be transferred to Retained Earnings the sale of the investment on September 30, 2021? (Indicate if debit or credit)

On December 31, 2020, GHI Corporation holds 50,000 shares of Harry Company with market value of P6,300,000 and originally acquired at a total amount of P5,900,000. The investment is classified as fair value through other comprehensive income. On March 1, 2021, a 3-for-2 stock split was completed by Harry Company. On September 30, 2021, GHI Corp. sold 21,000 shares of Harry Company for its fair value of P73/share. On December 31, 2021, a share of Harry Company has a fair value of P75/share. What is the balance of Unrealized Gain or Loss - Other Comprehensive Income to be transferred to Retained Earnings the sale of the investment on September 30, 2021? (Indicate if debit or credit)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 26E

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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.

Question

On December 31, 2020, GHI Corporation holds 50,000 shares of Harry Company with market value of
P6,300,000 and originally acquired at a total amount of P5,900,000. The investment is classified as fair
value through other comprehensive income. On March 1, 2021, a 3-for-2 stock split was completed by
Harry Company. On September 30, 2021, GHI Corp. sold 21,000 shares of Harry Company for its fair
value of P73/share. On December 31, 2021, a share of Harry Company has a fair value of P75/share.
What is the balance of Unrealized Gain or Loss - Other Comprehensive Income to be transferred to
Retained Earnings the sale of the investment on September 30, 2021? (Indicate if debit or credit)
3.

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