PROBLEM ON PROPERTY DIVIDENDS AND SHARE DIVIDENDS

Property Dividends Doused Company owns 15% of the outstanding ordinary shares of Albeit Corp. On November 1, 2018, Albeit declared its inventory as property dividends. Data relating to the fair values of the inventory follow: Date Total Fair Values of Property Dividends November 1, 2018 P250,000 December 31, 2018 P450,000 February 15, 2019 P410,000 a. Prepare all the necessary entries at the Date of declaration Date of record Date of payment b. How much is the dividend income to be recognized on 2018? Share Dividends On October 1, 2018, Contentious Corp owns 15,000 fair value through other comprehensive income ordinary shares at a cost of P1,500,000. The shares represent 15% of the ordinary shares outstanding of Pulsate Corporation. Record the receipt of the share dividends on the Contentious' books under each of the assumption listed below: Case No. 1: Assuming the shares are investment in unquoted securities measured at cost: 1. Contentious received 15% ordinary shares as Share Dividends. 2. Contentious received 1,500 preference shares as Share Dividends. The par value of the preference share is P200 per share while the ordinary shares has a par value of P100. Case NO. 2: Assuming the shares are financial assets at fair value through profit or loss 3. Contentious received 15% ordinary shares as Share Dividends. The fair value of the ordinary shares amounted to P100. 4. Contentious received 1,500 preference shares as Share Dividends. The fair value of each preference share is P150 Case No. 3: Assuming the shares are investment in equity securities designated as at fair value though other comprehensive income 5. Contentious received 15% ordinary shares as Share Dividends. The fair value of the ordinary shares amounted to P100. 6. Contentious received 1,500 preference shares as Share Dividends. The fair value of each preference share is P150