On November 1, 2019, TUNA Company invested P600,000 in equity securities representing 20,000 ordinary shares of SARDINES Company. The investment was classified as equity security to profit or loss since the company intends to sell the security for a short-term profit. In December 31, 2019, this investment has a market value of P580,000. On January 15, 2020, TUNA Company sold the investment of P630,000. What amount of realized gain should TUNA Company recognize on the disposal of the trading security?
On November 1, 2019, TUNA Company invested P600,000 in equity securities representing 20,000 ordinary shares of SARDINES Company. The investment was classified as equity security to profit or loss since the company intends to sell the security for a short-term profit. In December 31, 2019, this investment has a market value of P580,000. On January 15, 2020, TUNA Company sold the investment of P630,000. What amount of realized gain should TUNA Company recognize on the disposal of the trading security?
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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24. On November 1, 2019, TUNA Company invested P600,000 in equity securities representing 20,000 ordinary shares of SARDINES Company. The investment was classified as equity security to profit or loss since the company intends to sell the security for a short-term profit. In December 31, 2019, this investment has a market value of P580,000. On January 15, 2020, TUNA Company sold the investment of P630,000. What amount of realized gain should TUNA Company recognize on the disposal of the trading security?
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