FVPL vs. FVOCI (election) Fact pattern for the next three items: Elements Co. had the following investment transactions: Dec. 3, Acquired 12,000 shares of Buffet Corp. at P3.00 per share. 20x1 Elements incurred P1,800 brokerage commission. Buffet Corp.'s shares have a quoted price of P5.00 per share. Dec. 31, 20x1 Jan. 16, 20x2 Elements Co. sold all the shares at P8.00 per share. Elements incurred sale transaction costs of P4,800. Prepare the journal entries assuming Elements Co. irrevocably elected to measure the investment at FVOCI. Elements Co. does not use a fair value adjustment account.
FVPL vs. FVOCI (election) Fact pattern for the next three items: Elements Co. had the following investment transactions: Dec. 3, Acquired 12,000 shares of Buffet Corp. at P3.00 per share. 20x1 Elements incurred P1,800 brokerage commission. Buffet Corp.'s shares have a quoted price of P5.00 per share. Dec. 31, 20x1 Jan. 16, 20x2 Elements Co. sold all the shares at P8.00 per share. Elements incurred sale transaction costs of P4,800. Prepare the journal entries assuming Elements Co. irrevocably elected to measure the investment at FVOCI. Elements Co. does not use a fair value adjustment account.
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 7EB: Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the...
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