On January 1, 2019, ACT 185 Corporation had 15,000 ordinary shares of the 100,000 outstanding shares...

 

 

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On January 1, 2019, ACT 185 Corporation had 15,000 ordinary shares of the 100,000 outstanding shares of ACT 186 Corporation acquired for a total consideration of P 1,000,000, including directly attributable costs of P 15,000. Shares are held for non-trading purposes. During the year, ACT 186 declared a P 4 cash dividend to its shareholders. On December 31,2019, the ACT 186 Corporation shares were selling at P 75 per share. In July 1, 2020, ACT 185 Corporation received a 30% bonus issue. Subsequently, it sold 7,500 shares at P 78 per share. Market value of the ACT 186 Corporation share at December 31, 2020 was P 76 per share. The company has the policy of transferring to retained earnings the cumulative balance in equity when the investment is derecognized. On January 1, 2019, ACT 185 Corporation had 15,000 ordinary shares of the 100,000 outstanding shares of ACT 186 Corporation acquired for a total consideration of P 1,000,000, including directly attributable costs of P 15,000. Shares are held for non-trading purposes. During the year, ACT 186 declared a P 4 cash dividend to its shareholders. On December 31,2019, the ACT 186 Corporation shares were selling at P 75 per share. In July 1, 2020, ACT 185 Corporation received a 30% bonus issue. Subsequently, it sold 7,500 shares at P 78 per share. Market value of the ACT 186 Corporation share at December 31, 2020 was P 76 per share. The company has the policy of transferring to retained earnings the cumulative balance in equity when the investment is derecognized.

Answer rating: 100% (QA)

SOLUTION To calculate the unrealized gain or loss to be reported in the 2019 ACT 186s Other comprehe... View the full answer