Abednego Company purchased equity investments held for trading on January 1, 2020. Market – (12/31/20) 1,700,000 2,000,000 3,600,000 Purchase Price Transaction Cost Security 1 Security 2 Security 3 1,500,000 2,500,000 3,500,000 100,000 200,000 300,000 On June 1, 2021, Abednego Co. sold Security 1 for P2,100,000. In the 2021 Income Statement, what amount should be reported as gain on sale for trading securities?

Abednego Company purchased equity investments held for trading on January 1, 2020. Market – (12/31/20) 1,700,000 2,000,000 3,600,000 Purchase Price Transaction Cost Security 1 Security 2 Security 3 1,500,000 2,500,000 3,500,000 100,000 200,000 300,000 On June 1, 2021, Abednego Co. sold Security 1 for P2,100,000. In the 2021 Income Statement, what amount should be reported as gain on sale for trading securities?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1MC

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