FVPL vs. FVOCI (election) Fact pattern for the next three items: Elements Co. had the following investment transactions: Dec. 3, Acquired 12,000 shares of Buffet Corp. at P3.00 per share. 20x1 Elements incurred P1,800 brokerage commission. Buffet Corp.'s shares have a quoted price of P5.00 per share. Dec. 31, 20x1 Jan. 16, 20x2 Elements Co. sold all the shares at P8.00 per share. Elements incurred sale transaction costs of P4,800. Prepare the journal entries assuming Elements Co. irrevocably elected to measure the investment at FVOCI. Elements Co. does not use a fair value adjustment account.
FVPL vs. FVOCI (election) Fact pattern for the next three items: Elements Co. had the following investment transactions: Dec. 3, Acquired 12,000 shares of Buffet Corp. at P3.00 per share. 20x1 Elements incurred P1,800 brokerage commission. Buffet Corp.'s shares have a quoted price of P5.00 per share. Dec. 31, 20x1 Jan. 16, 20x2 Elements Co. sold all the shares at P8.00 per share. Elements incurred sale transaction costs of P4,800. Prepare the journal entries assuming Elements Co. irrevocably elected to measure the investment at FVOCI. Elements Co. does not use a fair value adjustment account.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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