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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.  How much should be recognized  in profit or loss on January 2, 20X3?  9,400 27,000 33,000 37,600

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.  How much should be recognized  in profit or loss on January 2, 20X3?  9,400 27,000 33,000 37,600

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 6MCQ: Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were...
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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. 

How much should be recognized  in profit or loss on January 2, 20X3? 

9,400
27,000
33,000
37,600
 
The answer is 33K why?
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