On July 1, 2021, Matiyaga Company purchased 1,000 shares of Masipag Corp. P100 par ordinary shares (5% interest in voting rights) at P175 per share. Matiyaga also paid transaction cost of P3,500. The shares were designated as equity investments at fair value through other comprehensive income. On December 31, 2021, Masipag ordinary shares were quoted at P200 per share. What is the carrying value of Matiyaga’s equity investment at December 31, 2021? a.) P100,000 b.) P175,000 c.) P178,500 d.) P200,000
On July 1, 2021, Matiyaga Company purchased 1,000 shares of Masipag Corp. P100 par ordinary shares (5% interest in voting rights) at P175 per share. Matiyaga also paid transaction cost of P3,500. The shares were designated as equity investments at fair value through other comprehensive income. On December 31, 2021, Masipag ordinary shares were quoted at P200 per share. What is the carrying value of Matiyaga’s equity investment at December 31, 2021? a.) P100,000 b.) P175,000 c.) P178,500 d.) P200,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2021, Matiyaga Company purchased 1,000 shares of Masipag Corp. P100 par ordinary shares (5% interest in voting rights) at P175 per share. Matiyaga also paid transaction cost of P3,500. The shares were designated as equity investments at fair value through other comprehensive income. On December 31, 2021, Masipag ordinary shares were quoted at P200 per share. What is the carrying value of Matiyaga’s equity investment at December 31, 2021?
a.) P100,000
b.) P175,000
c.) P178,500
d.) P200,000
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