On January 1, 2020. Mickey Mouse Corporation owns 15,000 ordinary shares representing 15% of the shares outstanding of Minnie Mouse Corporation. The ordinary shares were acquired at a cost of P1,400,000 and have a fair value of P1,500,000 on December 31, 2020. On January 2, 2021, Mickey Mouse sold half of its investment for P100 per share incurring a brokerage and commission expense of P20,000. Assume that the securities are classified as fair value through profit or loss. How much is the unrealized gain or (loss) on December 31, 2020 to be presented in the statement of financial position. Zero 100,000 gain 100,000 loss 20,000 gain
On January 1, 2020. Mickey Mouse Corporation owns 15,000 ordinary shares representing 15% of the shares outstanding of Minnie Mouse Corporation. The ordinary shares were acquired at a cost of P1,400,000 and have a fair value of P1,500,000 on December 31, 2020. On January 2, 2021, Mickey Mouse sold half of its investment for P100 per share incurring a brokerage and commission expense of P20,000. Assume that the securities are classified as fair value through profit or loss. How much is the unrealized gain or (loss) on December 31, 2020 to be presented in the statement of financial position. Zero 100,000 gain 100,000 loss 20,000 gain
Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations
Section: Chapter Questions
Problem 34P
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On January 1, 2020. Mickey Mouse Corporation owns 15,000 ordinary shares representing 15% of the shares outstanding of Minnie Mouse Corporation. The ordinary shares were acquired at a cost of P1,400,000 and have a fair value of P1,500,000 on December 31, 2020. On January 2, 2021, Mickey Mouse sold half of its investment for P100 per share incurring a brokerage and commission expense of P20,000. Assume that the securities are classified as fair value through profit or loss. How much is the unrealized gain or (loss) on December 31, 2020 to be presented in the
- Zero
- 100,000 gain
- 100,000 loss
- 20,000 gain
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