Duday Corporation incurred the following transactions relating to investment in Efren Corporation ordinary shares, which Duday acquired for trading purposes. 1st year Purchased 1,000 shares (5% interest in voting shares) at P150 per share, plus transaction costs of P3,750. At year-end, the Efren Corporation ordinary shares had a fair value of P180 per share. 2nd year Sold 500 shares of Efren Corporation at P190 per share, incurring P1,000 transaction costs on the sale. At year-end, the fair value of each share was P192. How much is the unrealized gain/loss on equity investments that is to be reported on the income statement for the 2nd year? (Note: Indicate "( )" if loss)
Duday Corporation incurred the following transactions relating to investment in Efren Corporation ordinary shares, which Duday acquired for trading purposes. 1st year Purchased 1,000 shares (5% interest in voting shares) at P150 per share, plus transaction costs of P3,750. At year-end, the Efren Corporation ordinary shares had a fair value of P180 per share. 2nd year Sold 500 shares of Efren Corporation at P190 per share, incurring P1,000 transaction costs on the sale. At year-end, the fair value of each share was P192. How much is the unrealized gain/loss on equity investments that is to be reported on the income statement for the 2nd year? (Note: Indicate "( )" if loss)
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 6MCQ
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Duday Corporation incurred the following transactions relating to investment in Efren Corporation ordinary shares, which Duday acquired for trading purposes.
1st year
- Purchased 1,000 shares (5% interest in voting shares) at P150 per share, plus transaction costs of P3,750.
- At year-end, the Efren Corporation ordinary shares had a fair value of P180 per share.
2nd year
- Sold 500 shares of Efren Corporation at P190 per share, incurring P1,000 transaction costs on the sale.
- At year-end, the fair value of each share was P192.
How much is the unrealized gain/loss on equity investments that is to be reported on the income statement for the 2nd year? (Note: Indicate "( )" if loss)
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