Through dividends and capital gains on changes in stock market prices, investing in the capital market is one approach to boost a company's income. On September 22, 2015, a business paid IDR. 20,000,000,000 for 20,000,000 PT Liana shares at the Indonesia Stock Exchange, plus IDR. 200,000,000 in expenditures directly related to the purchase of the shares. The market price of PT Liana Shares was Rp2,050 per share on September 31, 2015. On October 1, 2015, the corporation sold all PT Liana shares for IDR. 2,100 per share due to an unexpected need for cash. A total of IDR 60,000,000 was spent on the sale. If the shares are classed as available for sale, a. As of September 31, 2015, what was the change in the fair value of PT Liana Shares recognized in other comprehensive income? b. What was the PT Liana Shares cost per share on September 22, 2015? Calculations and explanations must be included! c. On October 1, 2015, how much profit or loss was reported on the sale of PT Liana Shares?
Through dividends and capital gains on changes in stock market prices, investing in the capital market is one approach to boost a company's income. On September 22, 2015, a business paid IDR. 20,000,000,000 for 20,000,000 PT Liana shares at the Indonesia Stock Exchange, plus IDR. 200,000,000 in expenditures directly related to the purchase of the shares. The market price of PT Liana Shares was Rp2,050 per share on September 31, 2015. On October 1, 2015, the corporation sold all PT Liana shares for IDR. 2,100 per share due to an unexpected need for cash. A total of IDR 60,000,000 was spent on the sale. If the shares are classed as available for sale, a. As of September 31, 2015, what was the change in the fair value of PT Liana Shares recognized in other comprehensive income? b. What was the PT Liana Shares cost per share on September 22, 2015? Calculations and explanations must be included! c. On October 1, 2015, how much profit or loss was reported on the sale of PT Liana Shares?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Through dividends and capital gains on changes in stock market prices, investing in the capital market is one approach to boost a company's income. On September 22, 2015, a business paid IDR. 20,000,000,000 for 20,000,000 PT Liana shares at the Indonesia Stock Exchange, plus IDR. 200,000,000 in expenditures directly related to the purchase of the shares. The market price of PT Liana Shares was Rp2,050 per share on September 31, 2015. On October 1, 2015, the corporation sold all PT Liana shares for IDR. 2,100 per share due to an unexpected need for cash. A total of IDR 60,000,000 was spent on the sale.
If the shares are classed as available for sale,
a. As of September 31, 2015, what was the change in the fair value of PT Liana Shares recognized in other comprehensive income?
b. What was the PT Liana Shares cost per share on September 22, 2015? Calculations and explanations must be included!
c. On October 1, 2015, how much profit or loss was reported on the sale of PT Liana Shares?
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