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Question - On January 1, 2018, Karen Company has a piece of land acquired a year ago at a cost of Php 600,000 and a fair value of Php 700,000. On March 31, 2018, the company exchange the land for a financial asset to be initially recognized at fair value through other comprehensive income. At the time of exchange, the shares, which was publicly listed has a fair value of Php 820,000.
Required - Based on the above, answer the following:
1. How much is the gain (loss) on exchange to be recognize in 2018?
2. What the journal entry on March 31.
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