Question
1. On December 28, 2016, Coldplay Company acquires 100,000 ordinary shares of Up & Up Company. The shares which represents 15% of the total outstanding
1. On December 28, 2016, Coldplay Company acquires 100,000 ordinary shares of Up & Up
Company. The shares which represents 15% of the total outstanding shares of Up & Up
Company was quoted at P3.45 each. Transaction costs incurred in acquiring the shares amounted to P20,000. Coldplay Company.
On December 31, 2016, Up & Up Company's shares were quoted at P4.05. The estimated
cost to sell the securities amounted to P15,000.
On January 11, 2017 Coldplay Company sells all the shares at its quoted price of P4.02.
TS FV tP&L
a. Initial measurement of the investment in Up & UpCompany
b. Gain (loss) in the 2016 profit or loss statement
c. Gain (loss) in the 2017 profit or loss statement
2. On December 12, 2016, Puth Company acquires 100,000 ordinary shares of One Call
Away Company's, 1,000,000 P2 par value ordinary shares outstanding for P275,000.
Commission and other fees incurred on the acquisition amounted to P12,000. Put Companyclassifies the securities as subsequently measured at fair value through OCI.
On December 31, 2016, One Call Away Company's shares were quoted at P3.02.
The estimated cost in selling the securities amounted to P8,000
On March 2, 2017 Puth Company sells all the shares at its quoted price of P3.11
AFS FV tOCI
a. Initial measurement of the investment in One Call
Away Company
b. Gain (loss) in the 2016 profit or loss statement
c. Gain (loss) in the 2017 profit or loss statement
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