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FINANCIAL ACCOUNTING
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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Problem 16-16 (IAA) entity to be held for trading. During 2021, Reminiscent Company bought shares of another During 2021, Reminiscent Company bought shares of another 20,000 shares @ P100 30,000 shares @ P120 2,000,000 3,600,000 1 June December 1 Transactions for 2022 Received cash dividend at P10 per share. Received 20% share dividend. Sold 30,000 shares at P125 per share. 10 January 20 January December 10 1. What amount should be recognized as gain on sale of investment using the FIFO approach? a. 1,150,000 b.. 950,000 150,000 550,000 с. d. 2. What amount should be recognized as gain on sale of investment using the average approach? a. 950,000 b. 750,000 c. 800,000 d. 900,000 3. What total amount should be reported as income from the investment using the FIFO approach? a. 1,650,000 b. 1,450,000 c. 1,750,000 d. 500,000
Transcribed Image Text:Problem 16-16 (IAA) entity to be held for trading. During 2021, Reminiscent Company bought shares of another During 2021, Reminiscent Company bought shares of another 20,000 shares @ P100 30,000 shares @ P120 2,000,000 3,600,000 1 June December 1 Transactions for 2022 Received cash dividend at P10 per share. Received 20% share dividend. Sold 30,000 shares at P125 per share. 10 January 20 January December 10 1. What amount should be recognized as gain on sale of investment using the FIFO approach? a. 1,150,000 b.. 950,000 150,000 550,000 с. d. 2. What amount should be recognized as gain on sale of investment using the average approach? a. 950,000 b. 750,000 c. 800,000 d. 900,000 3. What total amount should be reported as income from the investment using the FIFO approach? a. 1,650,000 b. 1,450,000 c. 1,750,000 d. 500,000
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