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On June 27, 2021, GHI Co. distributed to its ordinary shareholders 100,000 outstanding ordinary shares of its investment in OPQ, Inc., an unrelated party. The carrying amount on GHI's books of OPQ's P1 par ordinary share was P2 per share. Immediately after the distribution, the market price of OPQ's stock was P2.50 per share. In its income statement for the year ended June 30, 2021, what amount should GHI report as gain relating , to the disposal of the stock?

On June 27, 2021, GHI Co. distributed to its ordinary shareholders 100,000 outstanding ordinary shares of its investment in OPQ, Inc., an unrelated party. The carrying amount on GHI's books of OPQ's P1 par ordinary share was P2 per share. Immediately after the distribution, the market price of OPQ's stock was P2.50 per share. In its income statement for the year ended June 30, 2021, what amount should GHI report as gain relating , to the disposal of the stock?

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 June 27, 2021, GHI Co. distributed to its ordinary shareholders 100,000 outstanding ordinary shares of its investment in OPQ, Inc., an unrelated party. The carrying amount on GHI's books of OPQ's P1 par ordinary share was P2 per share. Immediately after the distribution, the market price of OPQ's stock was P2.50 per share. In its income statement for the year ended June 30, 2021, what amount should GHI report as gain relating , to the disposal of the stock? *
Transcribed Image Text:On June 27, 2021, GHI Co. distributed to its ordinary shareholders 100,000 outstanding ordinary shares of its investment in OPQ, Inc., an unrelated party. The carrying amount on GHI's books of OPQ's P1 par ordinary share was P2 per share. Immediately after the distribution, the market price of OPQ's stock was P2.50 per share. In its income statement for the year ended June 30, 2021, what amount should GHI report as gain relating , to the disposal of the stock? *
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