At December 31, 2020, Taehyung Company properly reported the following trading securities: Cost Market Value 40,000 IDOL Corporation, 1,000 shares 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
At December 31, 2020, Taehyung Company properly reported the following trading securities: Cost Market Value 40,000 IDOL Corporation, 1,000 shares 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
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 14RE
Related questions
Question
What is the correct cost of investment on January 5?
a. 880,000
b. 900,000
c.864,000
d.884,000
e. None of the above
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning