6. Avon Company acquired 40.000 ordinary shares of Nolon Company OCioberFinancial Accounting !Chapter 9Page 242020 for P6,600,000. On Decernber30.2020. Nolan distributed o10%anastock dividend when the market price of the share w as P250 On Decenbare2020, Avon sokd 4,000 shares of its Nolan Oonfipany forPi C00,000. For ffie yearEhded December 31.2020. how muct should Avon.report as gain on sale ofinvestment?0. 340.000400,00040,000C. 500.000d. 600,000

Per Share=Value of issue of shareOrdinary shares+Stock dividend=P 6,600,00040,000+40,000×10%=P 150

stock dividend when the market price of the share was P250 On December 31, 1,2020 for P6,600,000. On Decermber30,2020, Nolan distributed a 10% taifiary 6. Avon Company acquired 40.000 ordinary shares of Nolon Company Ociober ,2020 for P6,600,000. On Decernber30.2020. Nolan distributed o(107%rana SlOck dividend when the market price of the share wOS P250 On DecemberS" 2020, Avon sokd 4,000 shares of its Nolan Corfipany forPi00,000. For fhe yeur ended December 31.2020. how muct should Avon.report as gain on sale oi investment? 0. 340.000 400,000 40,000 C. 500.000 d. 600,000

stock dividend when the market price of the share was P250 On December 31, 1,2020 for P6,600,000. On Decermber30,2020, Nolan distributed a 10% taifiary 6. Avon Company acquired 40.000 ordinary shares of Nolon Company Ociober ,2020 for P6,600,000. On Decernber30.2020. Nolan distributed o(107%rana SlOck dividend when the market price of the share wOS P250 On DecemberS" 2020, Avon sokd 4,000 shares of its Nolan Corfipany forPi00,000. For fhe yeur ended December 31.2020. how muct should Avon.report as gain on sale oi investment? 0. 340.000 400,000 40,000 C. 500.000 d. 600,000

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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