Solomon Company owned 20,000 shares of Moses Company purchased in 2015 for P2,400,000. On December 15, 2020, Solomon declared a property dividend of all of its Moses Company shares on the basis of one share of Moses for every 10 ordinary shares of Solomon held by its shareholders. The property dividend was distributed on January 15, 2021. On the declaration date, the aggregate market price of the Moses shares held by Solomon was P2,200,000 and P2,000,000 by December 31, 2020. What is the measurement of the investment in shares at December 31, 2020?
Solomon Company owned 20,000 shares of Moses Company purchased in 2015 for P2,400,000. On December 15, 2020, Solomon declared a property dividend of all of its Moses Company shares on the basis of one share of Moses for every 10 ordinary shares of Solomon held by its shareholders. The property dividend was distributed on January 15, 2021. On the declaration date, the aggregate market price of the Moses shares held by Solomon was P2,200,000 and P2,000,000 by December 31, 2020. What is the measurement of the investment in shares at December 31, 2020?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 23E
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Solomon Company owned 20,000 shares of Moses Company purchased in 2015 for P2,400,000. On December 15, 2020, Solomon declared a property dividend of all of its Moses Company shares on the basis of one share of Moses for every 10 ordinary shares of Solomon held by its shareholders. The property dividend was distributed on January 15, 2021. On the declaration date, the aggregate market price of the Moses shares held by Solomon was P2,200,000 and P2,000,000 by December 31, 2020. What is the measurement of the investment in shares at December 31, 2020?
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