On January 2, 2012, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per share. Brokerage fees amounted to P120,000. A P5 dividend per share of Byzantine, Inc. shares had been declared on December 15, 2011, to be paid on March 31, 2012 to shareholders of record on January 31, 2012. The shares are designated as FA@FVTOCI. On December 31, 2012 the investment has a fair value of P3,820,000. How much should be recognized in the 2012 other comprehensive income related to these securities? Answer:

On January 2, 2012, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per share. Brokerage fees amounted to P120,000. A P5 dividend per share of Byzantine, Inc. shares had been declared on December 15, 2011, to be paid on March 31, 2012 to shareholders of record on January 31, 2012. The shares are designated as FA@FVTOCI. On December 31, 2012 the investment has a fair value of P3,820,000. How much should be recognized in the 2012 other comprehensive income related to these securities? Answer:

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 28E

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