Question
On January 1, 2021, Brianne Company acquired 30% of the voting share capital of another entity for P5,000,000 which was equal to the book value
On January 1, 2021, Brianne Company acquired 30% of the voting share capital of another entity for P5,000,000 which was equal to the book value of interest acquired. The investee reported net income of P4,000,000 for 2021 and P6,000,000 for 2022 but paid no dividends during the two-year period. On
July 1, 2022, Brianne Company sold half of the investment for P4,500,000. The fair value of the retained investment was P4,800,000 on July 1, 2022, and P5,500,000 on December 31, 2022. The retained investment is to be held at FVTOCI.
What is the gain on sale of investment that should be reported in 2022 income statement?
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Cornerstones of Financial Accounting
Authors: Jay Rich, Jeff Jones
4th edition
978-1337690881, 9781337669450, 1337690880, 1337690899, 1337669458, 978-1337690898
