OOn July 1, 2020, a Filipino entity whose functional currency is Philippine Peso acquired 1,000 common stocks of an American entity at a price of $5 per share. The Filipino entity| accounted the investment in common stocks at financial asset at fair value through profit or loss. On October 1, 2020, the American entity declared and distributed 20% same share dividends to its common stockholders. On December 31, 2020, the common stocks of the American entity are traded at $4 per share. The direct foreign currency exchange rates are $1=P50 on July 1, 2020 and $1=P52 on December 31, 2020. What is the foreign currency gain or loss exclusive of gain or loss on changes in fair value to be recognized Filipino entity for the year ended December 31, 2020?

OOn July 1, 2020, a Filipino entity whose functional currency is Philippine Peso acquired 1,000 common stocks of an American entity at a price of $5 per share. The Filipino entity| accounted the investment in common stocks at financial asset at fair value through profit or loss. On October 1, 2020, the American entity declared and distributed 20% same share dividends to its common stockholders. On December 31, 2020, the common stocks of the American entity are traded at $4 per share. The direct foreign currency exchange rates are $1=P50 on July 1, 2020 and $1=P52 on December 31, 2020. What is the foreign currency gain or loss exclusive of gain or loss on changes in fair value to be recognized Filipino entity for the year ended December 31, 2020?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter25: Taxation Of International Transactions

Section: Chapter Questions

Problem 25P

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