Inn Corporation had 30,000 ordinary shares of NPA Company which were acquired during Year 2 for a total consideration of P1,800,000, including P30,000 directly attributable costs. The shares were held for some anticipated long-term benefits and are not intended for immediate sale. Inn Corporation exercised its option to recognize the change in the equity investments' fair value through other comprehensive income. On December 31, Year 2, the NPA shares were selling at P65 per share. 

In July Year 3, Inn Corporation received a 20% bonus issue. Subsequently, during the year, it sold 15,000 shares at 70 per share. The fair value of NPA ordinary on December 31, Year 3 was P72 per share. 

REQUIRED: 

How much shall be reported as total income in profit or loss for Year 3 as a result of this investment?

Answer rating: 100% (QA)

The total income for Year 3 is 9000 Income from the sale of 150... View the full answer