Soprano Co. acquired 50,000 ordinary shares of Alto Co. on September 30, 2019 for P8,250,000. On October 30, the shares were split into 2:1 (split-up). On November 30, 2020, Alto Co. distributed 10% ordinary share dividends when the market price of the share was P250 per share. On December 31, 2020, Soprano Co. sold 6,000 of its Alto shares for P600,000. For the year ended December 31, 2020, how much should Soprano report as gain on sale of investment?
Soprano Co. acquired 50,000 ordinary shares of Alto Co. on September 30, 2019 for P8,250,000. On October 30, the shares were split into 2:1 (split-up). On November 30, 2020, Alto Co. distributed 10% ordinary share dividends when the market price of the share was P250 per share. On December 31, 2020, Soprano Co. sold 6,000 of its Alto shares for P600,000. For the year ended December 31, 2020, how much should Soprano report as gain on sale of investment?
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
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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Soprano Co. acquired 50,000 ordinary shares of Alto Co. on September 30, 2019 for P8,250,000. On October 30, the shares were split into 2:1 (split-up). On November 30, 2020, Alto Co. distributed 10% ordinary share dividends when the market price of the share was P250 per share. On December 31, 2020, Soprano Co. sold 6,000 of its Alto shares for P600,000. For the year ended December 31, 2020, how much should Soprano report as gain on sale of investment?
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