C4 Company owns 8% of Isolate Inc., P100 par, 140,000 outstanding ordinary shares which was acquired on November 20, 2022 for P1,320,000. C4 classified this as fair value through profit or loss. On December 1, 2022, Isolate declared a P2 per share cash dividend to shareholders of record January 10, 2023, payable on January 31, 2023. On December 28, 2022, C4 sold all the shares to extend Company at P115 per share. How much gain or loss on sale shall be recognized C4 on December 28, 2022?
C4 Company owns 8% of Isolate Inc., P100 par, 140,000 outstanding ordinary shares which was acquired on November 20, 2022 for P1,320,000. C4 classified this as fair value through profit or loss. On December 1, 2022, Isolate declared a P2 per share cash dividend to shareholders of record January 10, 2023, payable on January 31, 2023. On December 28, 2022, C4 sold all the shares to extend Company at P115 per share. How much gain or loss on sale shall be recognized C4 on December 28, 2022?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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C4 Company owns 8% of Isolate Inc., P100 par, 140,000 outstanding ordinary shares which was acquired on November 20, 2022 for P1,320,000. C4 classified this as fair value through profit or loss. On December 1, 2022, Isolate declared a P2 per share cash dividend to shareholders of record January 10, 2023, payable on January 31, 2023. On December 28, 2022, C4 sold all the shares to extend Company at P115 per share. How much gain or loss on sale shall be recognized C4 on December 28, 2022?
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