On January 1, 2020. Mickey Mouse Corporation owns 15,000 ordinary shares representing 15% of the shares outstanding of Minnie Mouse Corporation. The ordinary shares were acquired at a cost of P1,400,000 and have a fair value of P1,500,000 on December 31, 2020. On January 2, 2021, Mickey Mouse sold half of its investment for P100 per share incurring a brokerage and commission expense of P20,000. Assume that the securities are classified as fair value through profit or loss. How much is the unrealized gain or (loss) on December 31, 2020 to be presented in the statement of financial position. Zero 100,000 gain 100,000 loss 20,000 gain
On January 1, 2020. Mickey Mouse Corporation owns 15,000 ordinary shares representing 15% of the shares outstanding of Minnie Mouse Corporation. The ordinary shares were acquired at a cost of P1,400,000 and have a fair value of P1,500,000 on December 31, 2020. On January 2, 2021, Mickey Mouse sold half of its investment for P100 per share incurring a brokerage and commission expense of P20,000. Assume that the securities are classified as fair value through profit or loss. How much is the unrealized gain or (loss) on December 31, 2020 to be presented in the statement of financial position. Zero 100,000 gain 100,000 loss 20,000 gain
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On January 1, 2020. Mickey Mouse Corporation owns 15,000 ordinary shares representing 15% of the shares outstanding of Minnie Mouse Corporation. The ordinary shares were acquired at a cost of P1,400,000 and have a fair value of P1,500,000 on December 31, 2020. On January 2, 2021, Mickey Mouse sold half of its investment for P100 per share incurring a brokerage and commission expense of P20,000. Assume that the securities are classified as fair value through profit or loss. How much is the unrealized gain or (loss) on December 31, 2020 to be presented in the
- Zero
- 100,000 gain
- 100,000 loss
- 20,000 gain
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education