On January 1, 2022, Hum Company purchased 10,000 ordinary shares of Yippy Company, P100 par for P750,000. On March 10, it received 20% stock dividend. The company exchanged 4,000 ordinary shares of Yippy for 8,000 preference shares. At the time of exchange, Yippy ordinary is selling at P80 while Yippy preference share is at P90. (indicate whether it is a gain or loss) Compute for the gain/loss on exchange

Answer rating: 100% (QA)

To compute the gain or loss on the exchange of Yippy ordinary shares for Yippy preference sh... View the full answer