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MD Corp. completed the following transactions relating to investment in AO Company ordinary sha which were acquired for trading purposes. 2018 (1) Purchased 1,000 shares at P150 per share, plus transaction costs of P3,750 (2) At year-end, the AO Company ordinary shares had a fair value of P180 per share. 2019 (1) Sold 500 of AO Company ordinary shares at P190 per share, incurring P1,000 transaction costs sale. (2) At year-end, the fair value of each share was P192.

MD Corp. completed the following transactions relating to investment in AO Company ordinary sha which were acquired for trading purposes. 2018 (1) Purchased 1,000 shares at P150 per share, plus transaction costs of P3,750 (2) At year-end, the AO Company ordinary shares had a fair value of P180 per share. 2019 (1) Sold 500 of AO Company ordinary shares at P190 per share, incurring P1,000 transaction costs sale. (2) At year-end, the fair value of each share was P192.

Intermediate Accounting: Reporting And Analysis
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
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
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How much should be reported in the 2019 Profit or Loss? 

MD Corp. completed the following transactions relating to investment in AO Company ordinary shares, which were acquired for trading purposes. 2018 (1) Purchased 1,000 shares at P150 per share, plus transaction costs of P3,750 (2) At year-end, the AO Company ordinary shares had a fair value of P180 per share. 2019 (1) Sold 500 of AO Company ordinary shares at P190 per share, incurring P1,000 transaction costs on sale. (2) At year-end, the fair value of each share was P192.
Transcribed Image Text:MD Corp. completed the following transactions relating to investment in AO Company ordinary shares, which were acquired for trading purposes. 2018 (1) Purchased 1,000 shares at P150 per share, plus transaction costs of P3,750 (2) At year-end, the AO Company ordinary shares had a fair value of P180 per share. 2019 (1) Sold 500 of AO Company ordinary shares at P190 per share, incurring P1,000 transaction costs on sale. (2) At year-end, the fair value of each share was P192.
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