On July 1, 2021, Matiyaga Company purchased 1,000 shares of Masipag Corp. P100 par ordinary shares (5% interest in voting rights) at P175 per share. Matiyaga also paid transaction cost of P3,500. The shares were designated as equity investments at fair value through other comprehensive income. On December 31, 2021, Masipag ordinary shares were quoted at P200 per share. What is the carrying value of Matiyaga’s equity investment at December 31, 2021? a.) P100,000 b.) P175,000 c.) P178,500 d.) P200,000
On July 1, 2021, Matiyaga Company purchased 1,000 shares of Masipag Corp. P100 par ordinary shares (5% interest in voting rights) at P175 per share. Matiyaga also paid transaction cost of P3,500. The shares were designated as equity investments at fair value through other comprehensive income. On December 31, 2021, Masipag ordinary shares were quoted at P200 per share. What is the carrying value of Matiyaga’s equity investment at December 31, 2021? a.) P100,000 b.) P175,000 c.) P178,500 d.) P200,000
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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On July 1, 2021, Matiyaga Company purchased 1,000 shares of Masipag Corp. P100 par ordinary shares (5% interest in voting rights) at P175 per share. Matiyaga also paid transaction cost of P3,500. The shares were designated as equity investments at fair value through other comprehensive income. On December 31, 2021, Masipag ordinary shares were quoted at P200 per share. What is the carrying value of Matiyaga’s equity investment at December 31, 2021?
a.) P100,000
b.) P175,000
c.) P178,500
d.) P200,000
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