56 . During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares atP150 per share, plus transaction costs of P4,000. The shares acquired are for trading purposes. AtDecember 31, 2021, Pak ordinary shares are selling at P180/share. During the year 2022, Pal sold400 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.How much is the gain on sale of the 400 shares?

Solution calculation of gain on sale of shares Cost of shares = (1000 x 150) + 4,000 = 154,000 Now…

Answered: 21, Pak ordinary shares are selling at…

21, Pak ordinary shares are selling at P180/share. [ 5/share incurring P2,000 transaction costs on the es have fair value of P200/share. gain on sale of the 400 shares? m

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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