On October 31, 2022, ABC Inc. declared a building held as owner-occupied property with an original life of 10 years as dividend distributable to stockholders on January 31 of the following year. This was acquired at P800,000 on October 31, 2021. The property had fair market value of P900,000 on October 31, 2022. On December 31, 2022 the value of the property declined to P700,000. The property was transferred to shareholders on January 31 when the prevailing fair value was at P800,000. The entry to record the declaration of the property dividends would include a debit to retained earnings of: 900,000 800,000 700,000 1,000,000 What is the gain or loss to be recognized in the profit or losses as a result of the distribution of the property dividends on January 31? 300,000 100,000 None 200,000
On October 31, 2022, ABC Inc. declared a building held as owner-occupied property with an original life of 10 years as dividend distributable to stockholders on January 31 of the following year. This was acquired at P800,000 on October 31, 2021. The property had fair market value of P900,000 on October 31, 2022. On December 31, 2022 the value of the property declined to P700,000.
The property was transferred to shareholders on January 31 when the prevailing fair value was at P800,000.
The entry to record the declaration of the property dividends would include a debit to
900,000
800,000
700,000
1,000,000
What is the gain or loss to be recognized in the
300,000
100,000
None
200,000
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