No. 29 Tom Company is a subsidiary of Nette Company and its sharesare not traded in any capital market. Nette Company producesconsolidated financial statements for the group and complieswith the PFRS.On January 1, 2020, Tom Company acquired 100,000 ordinaryshares of Nette Company for P6,000,000.purchase, Nette had 500,000 outstanding ordinary shares andshareholders' equity of P20,000,000.Nette reported profit of P1,000,000 and declared and paid cashdividends of P1.50 per share. The fair value of Nette's share atDecember 31, 2020 was P68.At the date ofDuring the year 2020,What amount shall Tom Company recognize in profit or loss forthe year 2020 if it designated the investment as at fair valuethrough profit or loss?P150,000P200,000P350,000P950,000а.b.с.d.

Fair value through profit and loss is the method through which a business records its investments…

Answered: What amount shall Tom Company recognize…

What amount shall Tom Company recognize in profit or loss for the year 2020 if it designated the investment as at fair value through profit or loss?

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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