The following investment-related transactions were completed by LackyCorp. during 2020 - Purchased 30,000 shares of Y Company ordinary shares at P125 per share plus brokerage fees of P28,500. Lackyclassified this stock as non-trading security (FVTOCI) -Sold 4,500 shares of Y Company at P132 per share. a.At what amount should the Y Company shares be measured on initial recognition? b.How much is the realized gain or loss on the sale of Y Company shares?
The following investment-related transactions were completed by LackyCorp. during 2020 - Purchased 30,000 shares of Y Company ordinary shares at P125 per share plus brokerage fees of P28,500. Lackyclassified this stock as non-trading security (FVTOCI) -Sold 4,500 shares of Y Company at P132 per share. a.At what amount should the Y Company shares be measured on initial recognition? b.How much is the realized gain or loss on the sale of Y Company shares?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following investment-related transactions were completed by LackyCorp. during 2020
- Purchased 30,000 shares of Y Company ordinary shares at P125 per share plus brokerage fees of P28,500. Lackyclassified this stock as non-trading security (FVTOCI)
-Sold 4,500 shares of Y Company at P132 per share.
a.At what amount should the Y Company shares be measured on initial recognition?
b.How much is the realized gain or loss on the sale of Y Company shares?
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