On January 11, 2021, BERRY Company declared and distributed its trading securities as dividend. At the time of declaration, the investment has a carrying value of ₱500,000 and a related unrealized loss of ₱100,000. By what amount should BERRY Company charge its Retained Earnings as a result of the dividend declaration? a. ₱ 400,000 b. ₱ 100,000 c. ₱ 600,000 d. ₱ 500,000
On January 11, 2021, BERRY Company declared and distributed its trading securities as dividend. At the time of declaration, the investment has a carrying value of ₱500,000 and a related unrealized loss of ₱100,000. By what amount should BERRY Company charge its Retained Earnings as a result of the dividend declaration? a. ₱ 400,000 b. ₱ 100,000 c. ₱ 600,000 d. ₱ 500,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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On January 11, 2021, BERRY Company declared and distributed its trading securities as dividend. At the time of declaration, the investment has a carrying value of ₱500,000 and a related unrealized loss of ₱100,000. By what amount should BERRY Company charge its Retained Earnings as a result of the dividend declaration?
a. ₱ 400,000
b. ₱ 100,000
c. ₱ 600,000
d. ₱ 500,000
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