What total amount shall be reported in profit or loss in the Inn Corporation had 30,000 ordinary shares of NPA Company which it acquired during Year 2 for a total consideration of P1,800,000, including P30,000 directly attributable costs. The shares were acquired for trading purposes. On December 31, Year 2, the NPA shares were selling at P65 per share. In July Year 3, Inn Corporation received a 20% bonus issue. Subsequently during the year, it sold 15,000 shares at 70 per share. The fair value of NPA ordinary at December 31, Year 3 was P72 per share. Required: statement of comprehensive income for Year 3?
What total amount shall be reported in profit or loss in the Inn Corporation had 30,000 ordinary shares of NPA Company which it acquired during Year 2 for a total consideration of P1,800,000, including P30,000 directly attributable costs. The shares were acquired for trading purposes. On December 31, Year 2, the NPA shares were selling at P65 per share. In July Year 3, Inn Corporation received a 20% bonus issue. Subsequently during the year, it sold 15,000 shares at 70 per share. The fair value of NPA ordinary at December 31, Year 3 was P72 per share. Required: statement of comprehensive income for Year 3?
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
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 1MC
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Transcribed Image Text:What total amount shall be reported in profit or loss in the
Inn Corporation had 30,000 ordinary shares of NPA Company
which it acquired during Year 2 for a total consideration of
P1,800,000, including P30,000 directly attributable costs. The
shares were acquired for trading purposes.
On December 31, Year 2, the NPA shares were selling at P65 per
share.
In July Year 3, Inn Corporation received a 20% bonus issue.
Subsequently during the year, it sold 15,000 shares at 70 per
share.
The fair value of NPA ordinary at December 31, Year 3
was P72 per share.
Required:
statement of comprehensive income for Year 3?
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