Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help On January 1, 2020, Blunt Co. purchased 50,000 ordinary shares of Powter Co. at P16 per share. The shares are classified as financial

Please help

image text in transcribed
On January 1, 2020, Blunt Co. purchased 50,000 ordinary shares of Powter Co. at P16 per share. The shares are classified as financial asset at fair value through other comprehensive income. Powter declared and paid dividends of P4 and P5 per share in 2020 and 2021, respectively. At the end of 2020 and 2021, Powter's shares were trading at P17 and P14, respectively. 1. Determine the dividend income recognized by Blunt on the equity instrument in 2020 and 2021. 2. Determine the carrying amount of the equity instrument on Blunt's statement of financial statement on December 31, 2020 and December 31, 2021. 3. Determine the unrealized gain or loss on change in fair value recognized by Blunt in its profit or loss statement for the year ended December 31, 2020 and December 31, 2021. 4. Determine the cumulative balance of the unrealized gain or loss recognized in the other comprehensive income of Blunt's shareholders' equity on December 31, 2020 and December 31, 2021

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Business Process Approach

Authors: Jane L Reimers

2nd Edition

131473867, 978-0131473867

More Books

Students also viewed these Accounting questions