PROBLEM 2. On January 1, 2018, Inside Out Corporation had 30,000 ordinary shares of UP Company purchased at a total amount of P1,800,000, which includes directly attributable costs of P30,000. The shares were irrevocably designated to present changes in fair value through other comprehensive income. On December 31, 2018, the UP shares were selling at P65 per share. In July 2019, Inside Out Corporation received a 20% bonus issue. Subsequently, it sold 15,000 shares at P70 per share. Market value of UP ordinary at December 31, 2019 was P72 per share. At what amount should the Investment be shown on the December 31, 2019 Statement of Financial Position?

PROBLEM 2. On January 1, 2018, Inside Out Corporation had 30,000 ordinary shares of UP Company purchased at a total amount of P1,800,000, which includes directly attributable costs of P30,000. The shares were irrevocably designated to present changes in fair value through other comprehensive income. On December 31, 2018, the UP shares were selling at P65 per share. In July 2019, Inside Out Corporation received a 20% bonus issue. Subsequently, it sold 15,000 shares at P70 per share. Market value of UP ordinary at December 31, 2019 was P72 per share. At what amount should the Investment be shown on the December 31, 2019 Statement of Financial Position?

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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