How much should be recognized as the carrying value of investment in Yellow- FVPL account at Jan 2, 20X3? 610,600 1,320,000 1,831,800 1,860,000
On Jan 2, 20X1, ABC acquired 20% of the 400,000 ordinary shares of Yellow Co at P30 per share. The following data are applicable for 20X1 and 20X2:
20X1 20X2
Yellow dividends 40,000 48,000
Yellow profit 140,000 160,000
Yellow share market price at year end 32 31
On Jan 2, 20X3, ABC sold 20,000 shares of Yellow at its quoted price of P31 per share. After the sale, ABC does not expect to exercise significant influence over Yellow and the remaining shares were classified as FVPL.
How much should be recognized as the carrying value of investment in Yellow- FVPL account at Jan 2, 20X3?
610,600
1,320,000
1,831,800
1,860,000
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