MEME Corporation’s Retained Earnings at December 31, 2021 amounted to P2,000,000. On that date, the corporation declared and distributed its investment property which was acquired at a historical cost P300,000 and has a fair market value of P450,000 on December 31, 2021. On the date of declaration and distribution, by what amount should Retained Earnings be charged? A. P300,000 B. P150,000 C. None D. P450,000
MEME Corporation’s Retained Earnings at December 31, 2021 amounted to P2,000,000. On that date, the corporation declared and distributed its investment property which was acquired at a historical cost P300,000 and has a fair market value of P450,000 on December 31, 2021. On the date of declaration and distribution, by what amount should Retained Earnings be charged? A. P300,000 B. P150,000 C. None D. P450,000
Chapter17: Property Transactions: § 1231 And Recapture Provisions
Section: Chapter Questions
Problem 30CE
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MEME Corporation’s
A. P300,000
B. P150,000
C. None
D. P450,000
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