On December 30, 2021, CHERRY Company paid P2,000,000 for the land. On December 31, 2021, the current value of the land was P2,200,000. In January 2022, the land was sold for P2,250,000. Ignoring income tax, by what amount should shareholders’ equity be increased for 2021 and 2022 in current value financial statements? A. 2021 - ₱ 0; 2022 - ₱ 50,000 B. 2021 - ₱ 200,000; 2022 - ₱ 0 C. 2021 - ₱ 0; 2022 - ₱ 250,000 D. 2021 - ₱ 200,000; 2022 - ₱ 50,000

On December 30, 2021, CHERRY Company paid P2,000,000 for the land. On December 31, 2021, the current value of the land was P2,200,000. In January 2022, the land was sold for P2,250,000. Ignoring income tax, by what amount should shareholders’ equity be increased for 2021 and 2022 in current value financial statements? A. 2021 - ₱ 0; 2022 - ₱ 50,000 B. 2021 - ₱ 200,000; 2022 - ₱ 0 C. 2021 - ₱ 0; 2022 - ₱ 250,000 D. 2021 - ₱ 200,000; 2022 - ₱ 50,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 15DQ

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