What is the gain or loss on sale of Dynamite Inc shares?a. 20,000 gainb. 20,000 lossc. 7,500 gaind. 7,500 losse. None of the choicesf. Others, specify: At December 31, 2020, Taehyung Company properly reported the following trading securities:CostMarket ValueIDOL Corporation, 1,000 shares40,00030,000Dynamite Inc., 6,000 shares60,00090,000Stigma Co., 2,000 shares55,00080,000Total155,000200,000During 2021, the following transaction occurred among others:Jan-05 Acquired 8,000 shares of Anpanman Corp for P880,000 incurring additonal P10,000for brokerage and another P10,000 for commission. These shares are to be initiallyrecognized as trading securities.Feb-14 Received dividends from Anpanman Corp declared January 10, 2021, 16,000.Mar-18 Received dividends of P2 per share from Dynamite Inc.Nov-15 Sold 2,500 shares of Dynamite Inc. for P50,000 Commissions and taxes for P5,000 were paid for the saleOn December 31, 2021 the following are the available market values per share:Idol CorporationP50Dynamite Inc.15Stigma Co.45Anpanman Corp.100

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What is the gain or loss on sale of Dynamite Inc shares? a. 20,000 gain b. 20,000 loss c. 7,500 gain d. 7,500 loss e. None of the choices f. Others, specify:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

What is the gain or loss on sale of Dynamite Inc shares? a. 20,000 gain b. 20,000 loss c. 7,500 gain d. 7,500 loss e. None of the choices f. Others, specify:

At December 31, 2020, Taehyung Company properly reported the following trading securities:
Cost
Market Value
IDOL Corporation, 1,000 shares
40,000
30,000
Dynamite Inc., 6,000 shares
60,000
90,000
Stigma Co., 2,000 shares
55,000
80,000
Total
155,000
200,000
During 2021, the following transaction occurred among others:
Jan-05 Acquired 8,000 shares of Anpanman Corp for P880,000 incurring additonal P10,000
for brokerage and another P10,000 for commission. These shares are to be initially
recognized as trading securities.
Feb-14 Received dividends from Anpanman Corp declared January 10, 2021, 16,000.
Mar-18 Received dividends of P2 per share from Dynamite Inc.
Nov-15 Sold 2,500 shares of Dynamite Inc. for P50,000 Commissions and taxes for P5,000 were paid for the sale
On December 31, 2021 the following are the available market values per share:
Idol Corporation
P50
Dynamite Inc.
15
Stigma Co.
45
Anpanman Corp.
100

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