Soprano Co. acquired 50,000 ordinary shares of Alto Co. on September 30, 2019 for P8,250,000. On October 30, the shares were split into 2:1 (split-up). On November 30, 2020, Alto Co. distributed 10% ordinary share dividends when the market price of the share was P250 per share. On December 31, 2020, Soprano Co. sold 6,000 of its Alto shares for P600,000. For the year ended December 31, 2020, how much should Soprano report as gain on sale of investment?
Soprano Co. acquired 50,000 ordinary shares of Alto Co. on September 30, 2019 for P8,250,000. On October 30, the shares were split into 2:1 (split-up). On November 30, 2020, Alto Co. distributed 10% ordinary share dividends when the market price of the share was P250 per share. On December 31, 2020, Soprano Co. sold 6,000 of its Alto shares for P600,000. For the year ended December 31, 2020, how much should Soprano report as gain on sale of investment?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Soprano Co. acquired 50,000 ordinary shares of Alto Co. on September 30, 2019 for P8,250,000. On October 30, the shares were split into 2:1 (split-up). On November 30, 2020, Alto Co. distributed 10% ordinary share dividends when the market price of the share was P250 per share. On December 31, 2020, Soprano Co. sold 6,000 of its Alto shares for P600,000. For the year ended December 31, 2020, how much should Soprano report as gain on sale of investment?
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