how much should MANGO report as gain or loss on sale of investment?
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MANGO Company acquired 4,000 shares of KIWI Corporation ordinary shares on April 2, 2020 at a cost of ₱440,000 to be held for trading. On October 7, 2020, KIWI distributed a 10% ordinary share dividend when the market price of the shares was ₱125 per share. On December 15, 2020, MANGO sold 400 shares of its KIWI shares for ₱64,000. For the year ended, December 31, 2020, how much should MANGO report as gain or loss on sale of investment?
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- HARDWORK Corporation purchased 10,000 shares of its ₱10 par value ordinary shares for ₱120,000 on March 2, 2019. On December 18, 2019, HARDWORK reissued all 10,000 shares for ₱190,000. The issuance of treasury shares would include a credit to: a. Share premium of ₱70,000 b. Share capital of ₱100,000 c. Retained earnings of ₱70,000 d. Gain on sale of investment of ₱70,000. PINK Company purchased 50,000 shares (5% ownership) of WHITE Company on January 2, 2020 at ₱34 per share. PINK received a stock dividend of 15% on March 31, 2020 when the market price of the share is ₱40. On November 30, PINK paid ₱20 per share special assessment on the shares. On December 15, 2020, WHITE paid a cash dividend of ₱8 per share. On December 31, the prevailing market price of the trading security is at ₱49 per share. What amount should be reported as dividend income on the December 31, 2020 income statement? * ₱ 460,000 ₱ 400,000 ₱ 150,000 ₱ 60,000PINK Company purchased 50,000 shares (5% ownership) of WHITE Company on January 2, 2020 at ₱34 per share. PINK received a stock dividend of 15% on March 31, 2020 when the market price of the share is ₱40. On November 30, PINK paid ₱20 per share special assessment on the shares. On December 15, 2020, WHITE paid a cash dividend of ₱8 per share. On December 31, the prevailing market price of the trading security is at ₱49 per share. What is the carrying value of the above investment on December 31, 2020?
- PINK Company purchased 50,000 shares (5% ownership) of WHITE Company on January 2, 2020 at ₱34 per share. PINK received a stock dividend of 15% on March 31, 2020 when the market price of the share is ₱40. On November 30, PINK paid ₱20 per share special assessment on the shares. On December 15, 2020, WHITE paid a cash dividend of ₱8 per share. On December 31, the prevailing market price of the trading security is at ₱49 per share. 1. What amount should be reported as dividend income on the December 31, 2020 income statement? a. ₱ 60,000 b. ₱ 150,000 c. ₱ 460,000 d. ₱ 400,000 2. How much is the unrealized gain(loss) that should be presented in the statement of comprehensive income? a. ₱ 250,000 loss b. ₱ 750,000 gain c. ₱ 117,500 gain d. ₱ 32,500 loss 3. What is the carrying value of the above investment on December 31, 2020? a. ₱ 2,817,500 b. ₱ 3,105,000 c. ₱ 2,450,000 d. ₱ 2,700,000PINK Company purchased 50,000 shares (5% ownership) of WHITE Company on January 2, 2020 at ₱34 per share. PINK received a stock dividend of 15% on March 31, 2020 when the market price of the share is ₱40. On November 30, PINK paid ₱20 per share special assessment on the shares. On December 15, 2020, WHITE paid a cash dividend of ₱8 per share. On December 31, the prevailing market price of the trading security is at ₱49 per share. What amount should be reported as dividend income on the December 31, 2020 income statement? A. ₱ 460,000 B. ₱ 400,000 C. ₱ 150,000 D. ₱ 60,000PINK Company purchased 50,000 shares (5% ownership) of WHITE Company on January 2, 2020 at ₱34 per share. PINK received a stock dividend of 15% on March 31, 2020 when the market price of the share is ₱40. On November 30, PINK paid ₱20 per share special assessment on the shares. On December 15, 2020, WHITE paid a cash dividend of ₱8 per share. On December 31, the prevailing market price of the trading security is at ₱49 per share. How much is the unrealized gain(loss) that should be presented in the statement of comprehensive income? * ₱ 250,000 loss ₱ 750,000 gain ₱ 117,500 gain
- PINK Company purchased 50,000 shares (5% ownership) of WHITE Company on January 2, 2020 at ₱34 per share. PINK received a stock dividend of 15% on March 31, 2020 when the market price of the share is ₱40. On November 30, PINK paid ₱20 per share special assessment on the shares. On December 15, 2020, WHITE paid a cash dividend of ₱8 per share. On December 31, the prevailing market price of the trading security is at ₱49 per share. How much is the unrealized gain(loss) that should be presented in the statement of comprehensive income? A. ₱ 117,500 gain B. ₱ 250,000 loss C. ₱ 750,000 gain D. ₱ 32,500 lossPINK Company purchased 50,000 shares (5% ownership) of WHITE Company on January 2, 2020 at ₱34 per share. PINK received a stock dividend of 15% on March 31, 2020 when the market price of the share is ₱40. On November 30, PINK paid ₱20 per share special assessment on the shares. On December 15, 2020, WHITE paid a cash dividend of ₱8 per share. On December 31, the prevailing market price of the trading security is at ₱49 per share. What is the carrying value of the above investment on December 31, 2020? ₱ 2,450,000 ₱ 3,105,000 ₱ 2,700,000 ₱ 2,817,500PINK Company purchased 50,000 shares (5% ownership) of WHITE Company on January 2, 2020 at ₱34 per share. PINK received a stock dividend of 15% on March 31, 2020 when the market price of the share is ₱40. On November 30, PINK paid ₱20 per share special assessment on the shares. On December 15, 2020, WHITE paid a cash dividend of ₱8 per share. On December 31, the prevailing market price of the trading security is at ₱49 per share. What amount should be reported as dividend income on the December 31, 2020 income statement?
- On June 1, 2020, Ping Corp. purchased 10,000 of Pong's 50,000 outstanding shares at a price of P6.00 per share. Pong had earnings of P3,000 per month during 2020 and paid dividends of P10,000 on March 1, 2020 and P12,500 on December 1, 2020. The fair value of Pong's shares was P6.50 per share on December 31, 2020. Which statement is correct? O Assuming that the investment is FVTPL, the total effect on Ping's profit or loss for the year ended December 31, 2020 is P2,500 O Assuming that the investment is FVTOCI, the total effect on Ping's profit or loss for the year ended December 31, 2020 is P7,500. O Assuming that the investment is an associate, the total effect on Ping's profit or loss for the year ended December 31, 2020 is P3,600. O After all closing entries for 2020 are completed, the effect of the increase in fair value on total shareholders' equity would be the same amount under the FVTOCI and FVTPL approaches.On January 1, 2020, Hough Co. purchased 100,000 ordinary shares of Derek Co. at ₱20 per share. The shares are classified as financial asset at fair value through profit or loss. Derek declared and paid dividends of ₱2 and ₱3 per share during 2020 and 2021. At the end of 2020 and 2021, Derek's shares have a fair value of ₱18 and ₱22 respectively.1. Determine the dividend income recognized by Hough on the equity instrument in 2020 and 2021.2. Determine the carrying amount of the equity instrument on Hough's statement of financial statement on December 31, 2020 and December 31, 2021.3. Determine the unrealized gain or loss on change in fair value recognized by Hough in its profit or loss statement for the year ended December 31, 2020 and December 31, 2021.During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares at P150 per share, plus transaction costs of P4,000. The shares acquired are for trading purposes. At December 31, 2021, Pak ordinary shares are selling at P180/share. During the year 2022, Pal sold 400 shares at P195/share incurring P2,000 transaction costs on the sale. On December 31, 2022, the equity securities have fair value of P200/share.At what amount should the equity securities be reported at December 31, 2022? How much is the gain on sale of the 400 shares? What is the value of the equity investment at December 31, 2021?