On January 1, 20x1, ABC Company purchased 2,500 ordinary shares of DEF Company at ₱200 per share plus transaction costs of ₱5,250. These shares are acquired for trading purposes. On December 31, 20x1, the ordinary shares of DEF Company are quoted at ₱244 per share. On February 2, 20x2, ABC Company sold 750 shares of the DEF Company ordinary shares at ₱250 per share. ABC Company incurred transaction costs amounting to ₱2,840 in relation to the sale. On December 31, 20x2, the ordinary shares of DEF Company are quoted at ₱247 per share. 1. What amount of gain (loss) shall be recognized on February 2, 20x2? 2. At what amount shall ABC Company report its investment in DEF Company on December 31, 20x2? 3. What amount of unrealized gain (loss) on fair value change shall be reported in profit or loss for 20x2? 4. What total amount shall be reported in profit or loss for the year 20x2 in relation to the DEF Company ordinary shares?
On January 1, 20x1, ABC Company purchased 2,500 ordinary shares of DEF Company at ₱200 per share plus
transaction costs of ₱5,250. These shares are acquired for trading purposes. On December 31, 20x1, the
ordinary shares of DEF Company are quoted at ₱244 per share.
On February 2, 20x2, ABC Company sold 750 shares of the DEF Company ordinary shares at ₱250 per share.
ABC Company incurred transaction costs amounting to ₱2,840 in relation to the sale. On December 31, 20x2,
the ordinary shares of DEF Company are quoted at ₱247 per share.
1. What amount of gain (loss) shall be recognized on February 2, 20x2?
2. At what amount shall ABC Company report its investment in DEF Company on December 31, 20x2?
3. What amount of unrealized gain (loss) on fair value change shall be reported in profit or loss for 20x2?
4. What total amount shall be reported in profit or loss for the year 20x2 in relation to the DEF Company
ordinary shares?
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