On January 1, 2021, Mintal Company, an SME, purchased 10,000 shares of Los Amigos Company P100 par ordinary shares capital for P1,200,000 to be held as at fair value through other comprehensive income. On March 1, 2021, Mintal Company received a 20% bonus issue. On December 1, 2021, Mintal Company sold all the shares that were received under the bonus issue at P140 per share, and exchanged 5,000 shares of Los Amigos Company for an equipment with a fair value of P750,000. The gain on exchange to be recorded by Mintal Company is

On January 1, 2021, Mintal Company, an SME, purchased 10,000 shares of Los Amigos Company P100 par ordinary shares capital for P1,200,000 to be held as at fair value through other comprehensive income. On March 1, 2021, Mintal Company received a 20% bonus issue. On December 1, 2021, Mintal Company sold all the shares that were received under the bonus issue at P140 per share, and exchanged 5,000 shares of Los Amigos Company for an equipment with a fair value of P750,000. The gain on exchange to be recorded by Mintal Company is

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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During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150 per share, plus transaction costs of P4,000. The shares acquired are for trading purposes. At December 31, 2021, Goliath ordinary shares are selling at P180/share. During the year 2022, David sold 400 shares at P195/share incurring P2,000 transaction costs on the sale. On December 31, 2022, the equity securities have fair value of P200/share.How much unrealized holding gain should David report in profit or loss for the year 2022?
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