On June 30, 2021, Peter, Inc. purchased the following shares at a total cost of P10,700,000 designated as FVPL investment: Number of shares Total fair value Faye Corp. 100,000 1,400,000 Barto Corp. 200,000 3,700,000 Kesha Corp. 400,000 5,600,000 At the end of the year, the fair values of the shares are as follows: Faye Corp. P17 Barto Corp. 21 Kesha Co. 11 On June 30, 2022, Peter sold 75% of its holdings in Kesha at P13 per share. How much is the realized gain on sale on FVPL to be reported in net income during 2022?
On June 30, 2021, Peter, Inc. purchased the following shares at a total cost of P10,700,000 designated as FVPL investment: Number of shares Total fair value Faye Corp. 100,000 1,400,000 Barto Corp. 200,000 3,700,000 Kesha Corp. 400,000 5,600,000 At the end of the year, the fair values of the shares are as follows: Faye Corp. P17 Barto Corp. 21 Kesha Co. 11 On June 30, 2022, Peter sold 75% of its holdings in Kesha at P13 per share. How much is the realized gain on sale on FVPL to be reported in net income during 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On June 30, 2021, Peter, Inc. purchased the following shares at a total cost of P10,700,000 designated as FVPL investment:
Number of shares |
Total fair value |
|
Faye Corp. |
100,000 |
1,400,000 |
Barto Corp. |
200,000 |
3,700,000 |
Kesha Corp. |
400,000 |
5,600,000 |
At the end of the year, the fair values of the shares are as follows:
Faye Corp. |
P17 |
Barto Corp. |
21 |
Kesha Co. |
11 |
On June 30, 2022, Peter sold 75% of its holdings in Kesha at P13 per share.
How much is the realized gain on sale on FVPL to be reported in net income during 2022?
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