How much is the total income presented in the profit section

Assignment Help Accounting Basics

Reference no: EM132808723

At December 31, 2017, Honda Co. properly reported the following marketable equity securities as "trading securities".

	Cost	Market
Jazz. Corp. 1,000 convertible preference shares	P40,000	P44,000
City, Inc. 6,000 ordinary shares	P60,000	P54,000
CRV Co. 2,000 ordinary shares	P55,000	P50,000
Total	P155,000	P148,000

On January 2, 2018, HONDA purchased 100,000 shares of Mobillo's Corp ordinary share for P2,000,000 representing 25% of Mobillo's outstanding ordinary shares and an underlying equity of P1,600,000 in Mobillo's net assets on January 2.

During 2018, HONDA disposed of the following securities:

Jan 18 - sold 2,500 shares of City for P11 per share

Jun 1 - sold 500 shares of CRV for P20 per share

Sept 1 - sold 250 shares of Jazz's preference share for P32 per share

The following 2018 dividend information pertains to stock owned by HONDA:

Feb 14 - CRV issued a 10% stock dividend, when the market price of CRV's ordinary share was P22 per share

Apr 5 & Oct 5 - JAZZ paid dividends of P2 per share on its preference shares to stockholders of record on March 9 and September 9, respectively. These dividends were declared on February 28 and August 31, respectively.

Jun 30 - CITY paid a P1 per share dividend on its ordinary share.

Mar 1, Jun 1, Sep 1 and Dec1 - MOBILLO paid quarterly dividends of P0.50 per share on each of these dates. MOBILLO's net income for the year ended December 31, 2018 was P600,000.

Market value per share at the end of 2018 is similar to the market value at the end of 2017 except for investment in MOBILLO which is P25 at the end of 2018.

Required:

Question 1. How much is the total income (loss) presented in the Profit/Loss section of the Statement of Comprehensive Income for the year before adjustment to its market value on December 31, 2018?

Question 2. How much is the carrying value of all the investments at the end of 2018?

Reference no: EM132808723

Questions Cloud

Value of improving patient safety reporting systems : Detail and describe the costs associated with your issue. Explain the risk management issues associated with your issue.

Integrated transportation and distribution system : How and why should inland ports become better utilized to improve the integrated transportation and distribution system?

Explain fundamental economics concepts : Explain fundamental economics concepts in a clear and concise manner. The particular concepts chosen are known as known as threshold concepts

How could they have been better managed : How did they occur-were they planned or evolutionary? What was the reaction of the people affected? How could they have been better managed?

How much is the total income presented in the profit section : How much is the total income (loss) presented in the Profit/Loss section of the Statement of Comprehensive Income for the year

Effects of using social media in mental health of students : - To give knowledge and understanding on how frequent usage of technology can affect mental health of Students

Government role in controlling invasive species : Discuss the transporters role, the port's role and the government's role in controlling invasive species and other hazards inherent in the movement of goods,

Adopting a more suitable model of hr : Make a theory-supported case for adopting a more suitable model of HR that reflects the strategic direction of the company.

What organizational structure does amazon use : What organizational structure does Amazon use in regards to its HR Department? How does the organizations HR Managers implement the structure? Give examples.

User Account

All Pages