What amount of dividend income should be reported for the currentyear? Chowking Company engaged in the following investment transactionsduring the current year:Purchased 5,000 ordinary shares of ZZZ Company forP200 per share plus a brokerage commission ofP50,000. These shares are classified as tradingFebruary 1securities.Received P120 per share dividend on ZZZ Company25shares.JunePurchased 20,000 shares of XXX Company for P150 perOctober1share plus brokerage fee of P100,000. These shares aredesignated at FVOCI.Received P50 per share dividend on XXX CompanyDecember 31shares.ZZZ Company shares are selling for P250 and XXX31shares are selling for P180.

To calculate dividend we need to multiply dividend per share with the total outstanding shares held…

Answered: What amount of dividend income should…

Business

Accounting

What amount of dividend income should be reported for the current year?

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 28E

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Question

What amount of dividend income should be reported for the current year?

Chowking Company engaged in the following investment transactions
during the current year:
Purchased 5,000 ordinary shares of ZZZ Company for
P200 per share plus a brokerage commission of
P50,000. These shares are classified as trading
February 1
securities.
Received P120 per share dividend on ZZZ Company
25
shares.
June
Purchased 20,000 shares of XXX Company for P150 per
October
1
share plus brokerage fee of P100,000. These shares are
designated at FVOCI.
Received P50 per share dividend on XXX Company
December 31
shares.
ZZZ Company shares are selling for P250 and XXX
31
shares are selling for P180.

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