During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at P150 per share, plus transaction costs of P4,000. The shares acquired are designated as at fair value through other comprehensive income. At December 31, 2021, Goliath ordinary shares are selling at P180/share. During the year 2022, Davidl sold 400 shares at P195/share incurring P2,000 transaction costs on the sale. On December 31, 2022, the equity securities have fair value of P200/share. How much holding gain should David report in equity on Dec. 31, 2021?
During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at P150 per share, plus transaction costs of P4,000. The shares acquired are designated as at fair value through other comprehensive income. At December 31, 2021, Goliath ordinary shares are selling at P180/share. During the year 2022, Davidl sold 400 shares at P195/share incurring P2,000 transaction costs on the sale. On December 31, 2022, the equity securities have fair value of P200/share. How much holding gain should David report in equity on Dec. 31, 2021?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 23E
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Transcribed Image Text:During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary
shares at P150 per share, plus transaction costs of P4,000. The shares acquired are designated as
at fair value through other comprehensive income. At December 31, 2021, Goliath ordinary
shares are selling at P180/share. During the year 2022, Davidl sold 400 shares at P195/share
incurring P2,000 transaction costs on the sale. On December 31, 2022, the equity securities have
fair value of P200/share.
How much holding gain should David report in equity on Dec. 31, 2021?
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