Apples Corporation bought 2,000 shares of Oranges Corporation on January 2, 2020 at ₱150 per share and paid ₱2,250 as brokerage fee and ₱1,500 non-refundable tax. The investment is measured at fair value through other comprehensive income. Prior to the date of acquisition, information revealed that on December 8, 2019, Oranges Corporation declared a ₱10 cash dividend to shareholders on record as of January 31, 2020 payable on April 30, 2020. There were no other transactions in 2020 affecting the investment in Oranges Corporation. What is the historical or acquisition cost of the investment account? A.₱ 302,250 B.₱ 300,000 C.₱ 303,750 D.₱ 283,750
Apples Corporation bought 2,000 shares of Oranges Corporation on January 2, 2020 at ₱150 per share and paid ₱2,250 as brokerage fee and ₱1,500 non-refundable tax. The investment is measured at fair value through other comprehensive income. Prior to the date of acquisition, information revealed that on December 8, 2019, Oranges Corporation declared a ₱10 cash dividend to shareholders on record as of January 31, 2020 payable on April 30, 2020. There were no other transactions in 2020 affecting the investment in Oranges Corporation. What is the historical or acquisition cost of the investment account? A.₱ 302,250 B.₱ 300,000 C.₱ 303,750 D.₱ 283,750
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 24E
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Apples Corporation bought 2,000 shares of Oranges Corporation on January 2, 2020 at ₱150 per share and paid ₱2,250 as brokerage fee and ₱1,500 non-refundable tax. The investment is measured at fair value through other comprehensive income. Prior to the date of acquisition, information revealed that on December 8, 2019, Oranges Corporation declared a ₱10 cash dividend to shareholders on record as of January 31, 2020 payable on April 30, 2020. There were no other transactions in 2020 affecting the investment in Oranges Corporation. What is the historical or acquisition cost of the investment account?
A.₱ 302,250
B.₱ 300,000
C.₱ 303,750
D.₱ 283,750
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