The Polythene Pam Company purchases P2,000,000 of bonds. The asset has been designated as one at fair value through profit and loss.
The Polythene Pam Company purchases P2,000,000 of bonds. The asset has been designated as one at fair value through profit and loss.
Chapter8: Consolidated Tax Returns
Section: Chapter Questions
Problem 37P
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Question
12.
The Polythene Pam Company purchases P2,000,000 of bonds. The asset has been designated as one at fair value through
One year later, 10% of the bonds are sold for P400,000. Total cumulative gains previously recognized in Polythene Pam's financial statements in respect of the asset are P100,000.
What is the amount of the gain on disposal to be recognized in profit or loss?
Group of answer choices
P90,000
P100,000
P190,000
P200,000
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