On January 1, 2020, Erika Company purchased equity investments held for trading. Purchase Price Market 12/31/20 Security A 1,000,000 1,200,000 Security B 2,000,000 1,500,000 Securty C 3,000,000 3,100,000 On July 1, 2021, the entity sold Security A for P1,400,000, incurring P50,000 in brokerage commission and taxes. What amount should be reported as gain on sale for trading securities in the 2021 Income Statement?
On January 1, 2020, Erika Company purchased equity investments held for trading. Purchase Price Market 12/31/20 Security A 1,000,000 1,200,000 Security B 2,000,000 1,500,000 Securty C 3,000,000 3,100,000 On July 1, 2021, the entity sold Security A for P1,400,000, incurring P50,000 in brokerage commission and taxes. What amount should be reported as gain on sale for trading securities in the 2021 Income Statement?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Erika Company purchased equity investments held for trading.
Purchase Price Market 12/31/20
Security A 1,000,000 1,200,000
Security B 2,000,000 1,500,000
Securty C 3,000,000 3,100,000
On July 1, 2021, the entity sold Security A for P1,400,000, incurring P50,000 in brokerage commission and taxes. What amount should be reported as gain on
sale for trading securities in the 2021 Income Statement?
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