Question
Shangrila bought shares of Crossing, Inc. in two batches as follews: June 10,2019 2,000 shares at P100 P200,000 December 5, 2019 3,000 shares at P120
- Shangrila bought shares of Crossing, Inc. in two batches as follews:
June 10,2019 2,000 shares at P100 P200,000
December 5, 2019 3,000 shares at P120 P360,000
Total P560,000
Shangrila designated the Crossing shares as At Fair Value though OCI.
The Crossing shares were quoted at P125 on December 31, 2019
The following were the transactions for 2020:
March 10 Received cash dividend at P10 per share
June 20 Received 20% bonus issue. Shares sell at P120 after the bonus issue.
December 10 Sold 3000 shares at P120 per share (Coming from the December 5, 2019 lot)
The Crossing shares were quoted at 125 at December 31, 2020.
a. How much is taken to profit or loss a result of the foregoing events affecting the equity investments for the year ended December 21, 2020?
b. How much is the gain or loss on the sale of shares?
c. How much should Shangrila report as cumulative OCI in the equity section of its SFP at December 31, 2020?
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
16th Edition
324376375, 0324375743I, 978-0324376371, 9780324375749, 978-0324312140
