Homework Help is Here – Start Your Trial Now!
Business
Accounting
On Jan 2, 20X1, ABC acquired 20% of the 400,000 ordinary shares of Yellow Co at P30 per share. The following data are applicable for 20X1 and 20X2:                                                                      20X1                    20X2  Yellow dividends                                       40,000                 48,000 Yellow profit                                            140,000               160,000 Yellow share market price at year end            32                    31   On Jan 2, 20X3, ABC sold 20,000 shares of Yellow at its quoted price of P31 per share.    How much should be recognized  in profit or loss on January 2, 20X3? 9,400 27,000 33,000 37,600

On Jan 2, 20X1, ABC acquired 20% of the 400,000 ordinary shares of Yellow Co at P30 per share. The following data are applicable for 20X1 and 20X2:                                                                      20X1                    20X2  Yellow dividends                                       40,000                 48,000 Yellow profit                                            140,000               160,000 Yellow share market price at year end            32                    31   On Jan 2, 20X3, ABC sold 20,000 shares of Yellow at its quoted price of P31 per share.    How much should be recognized  in profit or loss on January 2, 20X3? 9,400 27,000 33,000 37,600

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

On Jan 2, 20X1, ABC acquired 20% of the 400,000 ordinary shares of Yellow Co at P30 per share. The following data are applicable for 20X1 and 20X2:

                                                                     20X1                    20X2

 Yellow dividends                                       40,000                 48,000

Yellow profit                                            140,000               160,000

Yellow share market price at year end            32                    31

 

On Jan 2, 20X3, ABC sold 20,000 shares of Yellow at its quoted price of P31 per share. 

 

How much should be recognized  in profit or loss on January 2, 20X3?

9,400

27,000

33,000

37,600

Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Consolidations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS