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On December 31, 2020, DEF, Inc. holds 100,000 shares of Devin Company with market value of P15,250,000 and originally acquired at a total amount of P15,000,000. The investment is classified as fair value through profit or loss. On July 1, 2021, DEF, Inc. purchased 30,000 additional shares of Devin Company at P152.30/share. On December 31, 2021, a share of Devin Company has a fair value of P153/share. What is the gain (loss) from change in fair value to be recognized in profit or loss in 2021? (Indicate if gain or loss)

On December 31, 2020, DEF, Inc. holds 100,000 shares of Devin Company with market value of P15,250,000 and originally acquired at a total amount of P15,000,000. The investment is classified as fair value through profit or loss. On July 1, 2021, DEF, Inc. purchased 30,000 additional shares of Devin Company at P152.30/share. On December 31, 2021, a share of Devin Company has a fair value of P153/share. What is the gain (loss) from change in fair value to be recognized in profit or loss in 2021? (Indicate if gain or loss)

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 28E
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2. On December 31, 2020, DEF, Inc. holds 100,000 shares of Devin Company with market value of P15,250,000 and originally acquired at a total amount of P15,000,000. The investment is classified as fair value through profit or loss. On July 1, 2021, DEF, Inc. purchased 30,000 additional shares of Devin Company at P152.30/share. On December 31, 2021, a share of Devin Company has a fair value of P153/share. What is the gain (loss) from change in fair value to be recognized in profit or loss in 2021? (Indicate if gain or loss)
Transcribed Image Text:2. On December 31, 2020, DEF, Inc. holds 100,000 shares of Devin Company with market value of P15,250,000 and originally acquired at a total amount of P15,000,000. The investment is classified as fair value through profit or loss. On July 1, 2021, DEF, Inc. purchased 30,000 additional shares of Devin Company at P152.30/share. On December 31, 2021, a share of Devin Company has a fair value of P153/share. What is the gain (loss) from change in fair value to be recognized in profit or loss in 2021? (Indicate if gain or loss)
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