On January 1, 2020, Erika Company purchased equity investments held for trading. Purchase Price Market 12/31/20 Security A 1,000,000 1,200,000 Security B 2,000,000 1,500,000 Securty C 3,000,000 3,100,000 On July 1, 2021, the entity sold Security A for P1,400,000, incurring P50,000 in brokerage commission and taxes. What amount should be reported as gain on sale for trading securities in the 2021 Income Statement?
On January 1, 2020, Erika Company purchased equity investments held for trading. Purchase Price Market 12/31/20 Security A 1,000,000 1,200,000 Security B 2,000,000 1,500,000 Securty C 3,000,000 3,100,000 On July 1, 2021, the entity sold Security A for P1,400,000, incurring P50,000 in brokerage commission and taxes. What amount should be reported as gain on sale for trading securities in the 2021 Income Statement?
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 16E
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On January 1, 2020, Erika Company purchased equity investments held for trading.
Purchase Price Market 12/31/20
Security A 1,000,000 1,200,000
Security B 2,000,000 1,500,000
Securty C 3,000,000 3,100,000
On July 1, 2021, the entity sold Security A for P1,400,000, incurring P50,000 in brokerage commission and taxes. What amount should be reported as gain on
sale for trading securities in the 2021 Income Statement?
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