User Account

All Pages

What amount of gain on sale of investment should recognized

Assignment Help Accounting Basics
Reference no: EM132827955

Question - At the beginning of the current year, Switzerland Company purchase 50,000 shares of another entity for P3,800,000. During the year, the entity received 50,000 shares rights from the investee. The share rights are not accounted for separately. Each right entitled the shareholder to acquire one share for P80.The market price of the investee's share was P100 immediately before the right were issued and P90 immediately after the rights were issued. The entity exercised all share rights during the year. At year-end, the entity sold 25,000 shares at P90 per share. The FIFO approach is used. What amount of gain on sale of investment should be recognized in the current year?

Reference no: EM132827955

Questions Cloud

Which is not a valid reason to change an accounting policy : Which is not a valid reason to change an accounting policy? When an IFRS specifically applies to transaction then the accounting policies should be determined?
Describe interface design techniques that you will use : In a Word document of 1-2 pages, describe at least 3 interface design techniques that you will use in your interface design. Create a mock-up interface for.
What nominal quarterly rate would be equivalent to the rate : Queeny Inc can borrow from its bank for one month. What nominal quarterly rate would be equivalent to the rate charged by the bank
What does retrospective application of accounting policy : What does retrospective application of accounting policy mean? Application of accounting policies from the year in which change in accounting policies happened
What amount of gain on sale of investment should recognized : At year-end, the entity sold 25,000 shares at P90 per share. The FIFO approach is used. What amount of gain on sale of investment should be recognized
Which is not a change in accounting policy : Which is not a change in accounting policy? When is a prospective change in accounting policy allowed? When its impracticable to calculate the cumulative effect
Would you advise your company to adopt an abc system : Assume you are the cost accountant of a company that manufactures a single product, would you advise your company to adopt an ABC system? Why or why not?
Calculate morley loss or gain on redemption : On January 1, 2016, Morley Electronics issued bonds with a par value of $1,350,000 at 95, due in 10 years. Calculate Morley loss or gain on redemption
Certifications for healthcare administration and management : Conduct a search for internships or volunteer opportunities that might pertain to healthcare administration and management as a whole.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd