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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

FINANCIAL ACCOUNTING
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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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
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