Globe Company, a real estate developer, is owned by five founding shareholders. On December 1, 2019, the entity declared a property dividend of a "one-bedroom flat" for each shareholder. The property dividend is payable on January 31, 2020. On December 1, 2019, the carrying amount of a one-bedroom flat is P1,000,000 and the fair value is P1,500,000. However, the fair values is P1,800,000 on December 31, 2019 and P1,900,000 and January 31, 2020. 1. What amount should be recorded as dividend payable on December 1, 2019? 2. What amount should be reported as dividend payable on December 31, 2019?
Globe Company, a real estate developer, is owned by five founding shareholders. On December 1, 2019, the entity declared a property dividend of a "one-bedroom flat" for each shareholder. The property dividend is payable on January 31, 2020. On December 1, 2019, the carrying amount of a one-bedroom flat is P1,000,000 and the fair value is P1,500,000. However, the fair values is P1,800,000 on December 31, 2019 and P1,900,000 and January 31, 2020. 1. What amount should be recorded as dividend payable on December 1, 2019? 2. What amount should be reported as dividend payable on December 31, 2019?
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 52P
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Globe Company, a real estate developer, is owned by five founding shareholders.
On December 1, 2019, the entity declared a property dividend of a "one-bedroom flat" for each shareholder. The property dividend is payable on January 31, 2020.
On December 1, 2019, the carrying amount of a one-bedroom flat is P1,000,000 and the fair value is P1,500,000.
However, the fair values is P1,800,000 on December 31, 2019 and P1,900,000 and January 31, 2020.
On December 1, 2019, the entity declared a property dividend of a "one-bedroom flat" for each shareholder. The property dividend is payable on January 31, 2020.
On December 1, 2019, the carrying amount of a one-bedroom flat is P1,000,000 and the fair value is P1,500,000.
However, the fair values is P1,800,000 on December 31, 2019 and P1,900,000 and January 31, 2020.
1. What amount should be recorded as dividend payable on December 1, 2019?
2. What amount should be reported as dividend payable on December 31, 2019?
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