On January 2, 2010, Megan Company declared and distributed its only investment in equity securities as dividend. At the time of the declaration, the securities has a carrying value of P500,000 and a related unrealized loss of P100,000. By what amount should Megan Company charge its accumulated profit as a result of the property dividend declaration

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
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On January 2, 2010, Megan Company declared and distributed its only investment in equity securities as dividend. At the time of the declaration, the securities has a carrying value of P500,000 and a related unrealized loss of P100,000. By what amount should Megan Company charge its accumulated profit as a result of the property dividend declaration? *
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