Inn Corporation had 30,000 ordinary shares of NPA Company which were acquired during Year 2 for a total consideration o P1,800,000, including P30,000 directly attributable costs Th shares were held for some anticipated long-term benefits and are not intended for immediate sale. Inn Corporation exercised its option to recognize the change in the equity investments' fair value through other comprehensive income. On December 31, Year 2, the NPA shares were selling at P65 per share. In July Year 3, Inn Corporation received a 20% bonus issue. Subsequently during the year, it sold 15,000 shares at 70 per share. The fair value of NPA ordinary at December 31, Year 3 was P72 per share. REQUIRED: At what amount should the investment be shown on December 31, Year 3 statement of financial position?
Inn Corporation had 30,000 ordinary shares of NPA Company which were acquired during Year 2 for a total consideration o P1,800,000, including P30,000 directly attributable costs Th shares were held for some anticipated long-term benefits and are not intended for immediate sale. Inn Corporation exercised its option to recognize the change in the equity investments' fair value through other comprehensive income. On December 31, Year 2, the NPA shares were selling at P65 per share. In July Year 3, Inn Corporation received a 20% bonus issue. Subsequently during the year, it sold 15,000 shares at 70 per share. The fair value of NPA ordinary at December 31, Year 3 was P72 per share. REQUIRED: At what amount should the investment be shown on December 31, Year 3 statement of financial position?
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 8MC
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Transcribed Image Text:Inn Corporation had 30,000 ordinary shares of NPA Company
which were acquired during Year 2 for a total consideration o
P1,800,000, including P30,000 directly attributable costs, Th
shares were held for some anticipated long-term benefits and are
not intended for immediate sale. Inn Corporation exercised ite
option to recognize the change in the equity investments' fair
value through other comprehensive income.
On December 31, Year 2, the NPA shares were selling at P65 per
share.
In July Year 3, Inn Corporation received a 20% bonus issue.
Subsequently during the year, it sold 15,000 shares at 70 per
share. The fair value of NPA ordinary at December 31, Year 3
was P72 per share.
REQUIRED:
At what amount should the investment be shown on
December 31, Year 3 statement of financial position?
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