How much is the gain or loss on exchange to be recognize

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Reference no: EM132794484

On January 1, 2018, Karen Company has an investment in equity designated as FVTOCI with a fair value of Php 600,000. These securities were acquired a year ago at a cost of Php 625,000. On March 31, 2018, Karen Company exchanged these securities for a piece of land from Klaire Company. The carrying amount of the land in the book was Php 480,000 and a zonal value of Php 800,000. At the time of exchange, the shares, which was publicly listed has a fair value of Php 650,000.

Required: Based on the above, answer the following:

Problem 1: How much is the gain (loss) on exchange to be recognize in 2018 equity?

Reference no: EM132794484

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