Reference no: EM132944175
Jam Company bought the ordinary shares of Mad Company designated as equity securities at fair value through other comprehensive income, as follows: June 20,2019 - 1,000 shares for P 101,600 November 5,2019 - 3,000 shares at P 104 per share On January 25,2020, Jam Company received cash dividend of P 4.50 per share. On June 14,2020, it received a 10% bonus issue and on July 18,2020, Jam sold 1,500 shares at P 95 per share.
Market values of Mad Company ordinary shares are as follows:
December 31,2019 - P 106.70 per share
December 31,2020 - P 96 per share
Problem 1.) How much would the equity investment be reported at December 31,2019?
Option 1: P 384,000
Option 2: P 413,600
Option 3: P431,600
Option 4: P 426,800
Problem 2.) How much is the dividend revenue reported in Jam's statement of comprehensive income for the year ended December 31,2020?
Option 1: P19,800
Option 2: P 18,000
Option 3: P 13,500
Option 4: P 4,500
Problem 3.) What is the revised carrying amount per share of Mad Company ordinary shares after the receipt of bonus issue on June 14,2020?
Option 1: P 97
Option 2: P 96
Option 3: P 95
Option 4: P 94
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