ABC Company acquired 60,000 shares of DEF Incorporated's 200,000 ordinary shares on January 2, 2019 for...

 

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ABC Company acquired 60,000 shares of DEF Incorporated's 200,000 ordinary shares on January 2, 2019 for P 4,000,000 when the net assets of DEF Incorporated was P 12,000,000. The excess of acquisition cost over the book value of recorded assets is attributable to goodwill. This acquisition gave ABC Company significant influence over DEF Incorporated. DEF Incorporated earned P 2,000,000 net income and paid dividends of P 600,000 in 2019. On January 1, 2020, ABC Company sold 50% of its investment at P 80 per share and subsequently lost significant influence over DEF and so classified the remaining shares as equity investments at fair value through other comprehensive income.DEF Incorporated earned P 3,000,000 net income in 2020. DEF Incorporated also paid dividends of P 1,000,000 in 2020. Market value of DEF Incorporated's ordinary shares is P 90 on December 31, 2020. Required What is the total amount that should be reported in profit or loss relating to the securities during 2020? How much is the gain or loss to be recognize on the sale of 50% of DEF shares? ABC Company acquired 60,000 shares of DEF Incorporated's 200,000 ordinary shares on January 2, 2019 for P 4,000,000 when the net assets of DEF Incorporated was P 12,000,000. The excess of acquisition cost over the book value of recorded assets is attributable to goodwill. This acquisition gave ABC Company significant influence over DEF Incorporated. DEF Incorporated earned P 2,000,000 net income and paid dividends of P 600,000 in 2019. On January 1, 2020, ABC Company sold 50% of its investment at P 80 per share and subsequently lost significant influence over DEF and so classified the remaining shares as equity investments at fair value through other comprehensive income.DEF Incorporated earned P 3,000,000 net income in 2020. DEF Incorporated also paid dividends of P 1,000,000 in 2020. Market value of DEF Incorporated's ordinary shares is P 90 on December 31, 2020. Required What is the total amount that should be reported in profit or loss relating to the securities during 2020? How much is the gain or loss to be recognize on the sale of 50% of DEF shares?