Compute for the gain or loss on exchange

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Reference no: EM132805558

On January 1, 2020, Hum Company purchased 10,000 ordinary shares of Yippy Company, P100 par for P750,000. On March 10, it received 20% stock dividend. The company exchanged 4,000 ordinary shares of Yippy for 8,000 preference shares. At the time of exchange, Yippy ordinary is selling at P80 while Yippy preference share is at P90.

Problem 1: Compute for the gain/loss on exchange.

Reference no: EM132805558

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