16. Wondrous Company acquired 40,000 ordinary shares on September 30 for P6,600,000 to be held for trading. On December 1, the investee distributed a 10% ordinary stock dividend when the market price of the share was P250. On December 31, the entity sold 4,000 shares for P1,000,000. What amount should be reported as gain on sale of investment in the current year? a. 340,000 b. 400,000 C. 500,000 d. 600,000
16. Wondrous Company acquired 40,000 ordinary shares on September 30 for P6,600,000 to be held for trading. On December 1, the investee distributed a 10% ordinary stock dividend when the market price of the share was P250. On December 31, the entity sold 4,000 shares for P1,000,000. What amount should be reported as gain on sale of investment in the current year? a. 340,000 b. 400,000 C. 500,000 d. 600,000
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 7EB: Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the...
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