During 2020, Tanso purchased 20,000 shares of Ginto common stock for P315,000 as an equity investment at FVTPL. The fair value of these shares was P300,000 on December 31, 2020. Tanso sold all of the Ginto stock for P17 per share on February 3, 2021, incurring P14,000 in brokerage commissions. Tanso should report a net realized gain/loss on the sale of stocks in 2021 amounting to
During 2020, Tanso purchased 20,000 shares of Ginto common stock for P315,000 as an equity investment at FVTPL. The fair value of these shares was P300,000 on December 31, 2020. Tanso sold all of the Ginto stock for P17 per share on February 3, 2021, incurring P14,000 in brokerage commissions. Tanso should report a net realized gain/loss on the sale of stocks in 2021 amounting to
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
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 5MC
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During 2020, Tanso purchased 20,000 shares of Ginto common stock for P315,000 as an equity investment at FVTPL. The fair value of these shares was P300,000 on December 31, 2020. Tanso sold all of the Ginto stock for P17 per share on February 3, 2021, incurring P14,000 in brokerage commissions.
Tanso should report a net realized gain/loss on the sale of stocks in 2021 amounting to
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