User Account

All Pages

What is the gain on sale of investment

Assignment Help Accounting Basics
Reference no: EM133015775

Question - On January 1, 2021, Pampanga Company purchased 50,000 shares of another entity for P3,600,000. On October 1, 2021, Pampanga received 50,000 stock rights from investee. Each right entitles the shareholder to acquire one share for P85. The market price of the investee's share was P100 immediately before the rights were issued and P90 immediately after the rights were issued. On December 1, 2021, Pampanga exercised all stock rights. On December 31, 2021, Pampanga sold 25,000 shares at P90 per share. The stock rights are not accounted for separately. If the FIFO approach is used, what is the gain on sale of investment that should be recognized in 2021?

Reference no: EM133015775

Questions Cloud

What is this project net present value : You are considering a project that requires an initial investment of $105,000 with a cost of capital of 12%. What is this project net present value
Prepare the consolidation journal entries : Based on the above information, prepare the consolidation journal entries that Large Ltd will need to pass on 30 June 2020
What is the total dollar amount of markdown : The remaining turkeys will be clearanced at 50% off to make space for Christmas hams. What is the total dollar amount of markdown
Why is it necessary to hold debriefing activities : Why is it necessary to hold debriefing activities, to allow teams the opportunity to reflect on activities and the time to think about opportunities
What is the gain on sale of investment : On December 31, 2021, Pampanga sold 25,000 shares at P90 per share. The stock rights are not accounted for separately. What is the gain on sale of investment
How many additional shares must the minority group have : How many additional shares must the minority group have to ensure the election of the minimum majority of directors
Compute the hreakeven point : AutoCan sells automated car wash service. The car wash is priced at $12 per car. The cost for the rent, assistants, and promotion is $10,000.
What connections do you see between the concepts of health : What Connections Do You See Between the Concepts of Health, Health Determinants, and Health Policymaking?
Describe the key features of the multi-payer : Describe some of the key features of the multi-payer and single payer health systems in the United Kingdom and Canada.

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