Topic: Gain or Loss on Sale of FVPLQuestion: Why Transaction was not deducted from the selling price when getting the Gain on Sale? Gain or Loss on Sale of FVPL13) On January 1, 2020, Erika Company purchased equity investments held for trading.Market-12/31/20;1,200,01,500,03,100,0Purchase PriceSecurity ASecurity BSecurity C1,000,0002,000,0003,000,000Transaction Cost100,000200,000300,000On July 1, 2021, the entity sold Security A for P1,900,000.What amount should be reported as gain on sale for trading securities in the 2021 Income Statement?CA 2020 SEC. ASPGAIN ON SALE1,200,0001,900,000700,000

Introduction: An income statement is a financial statement that shows the company's income and…

Gain or Loss on Sale of FVPL 13) On January 1, 2020, Erika Company purchased equity investments held for trading. Purchase Price Transaction Cost Market-12/31/20 Security A Security B Security C 100,000 200,000 300,000 1,200,C 1,500,C 3,100,0 1,000,000 2,000,000 3,000,000 On July 1, 2021, the entity sold Security A for P1,900,000. What amount should be reported as gain on sale for trading securities in the 2021 Income Statement? CA 2020 SEC. A SP GAIN ON SALE 1,200,000 1,900,000 700,000

Gain or Loss on Sale of FVPL 13) On January 1, 2020, Erika Company purchased equity investments held for trading. Purchase Price Transaction Cost Market-12/31/20 Security A Security B Security C 100,000 200,000 300,000 1,200,C 1,500,C 3,100,0 1,000,000 2,000,000 3,000,000 On July 1, 2021, the entity sold Security A for P1,900,000. What amount should be reported as gain on sale for trading securities in the 2021 Income Statement? CA 2020 SEC. A SP GAIN ON SALE 1,200,000 1,900,000 700,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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