Question
On July 1, 20X5, Suarez Company declared as property dividends inventory with a carrying amount of P4 million. Information on fair values is as follows:
On July 1, 20X5, Suarez Company declared as property dividends inventory with a carrying amount of P4 million. Information on fair values is as follows:
Fair Value*
July 1, 20X5
P4.4 million
July 31, 20X5
P4.8 million
The fair value is not materially different from the net realizable value.
Required
- How much is the debit to retained earnings on July 1, 20X5?
- On July 31, 20X5, the property dividends payable is settled. How much is the gain or loss on settlement recognized in P&L?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting
Authors: Ray H Garrison, Alan Webb, Theresa Libby
11th Canadian Edition
1259275817, 978-1259275814
