How much is the gain or loss on reclassification

Assignment Help Financial Accounting

Reference no: EM132800458

Question - Karen Company owns 8,000 convertible preference shares of which was acquired in 2017 at a cost of Php 400,000. On December 31, 2017, the par value of the preference share was Php 430,000.Required: Based on the above, answer the following:

Assume that the investment is to be held as a trading securities and also assume that on August 31, 2018, Karen Company recorded a transfer of all shares to FVTOCI when the fair value was Php 55/share. How much is the gain or loss on reclassification date in 2018?

Assume that the investment is to be held as a fair value through other comprehensive income securities and also assume that on August 31, 2018, Karen Company recorded a transfer of all shares to trading securities when the fair value was Php 55/share. How much is the gain or loss on reclassification date in 2018?

Reference no: EM132800458

Questions Cloud

Determining the firm strategic direction : Discuss effective leadership and the five key leadership actions: Determining the firm's strategic direction; effectively managing the resource portfolio

How does diversity affect team creativity : How does diversity affect team creativity? To answer this question, define diversity in a way that is relevant to team creativity.

General information on outlines : For assignment, follow a traditional outline format using the information below as a guide:

How much impairment loss should the bank recognize : Present your answer in good accounting form. Use 360 days = 1 year. How much impairment loss should the bank recognize on December 31, 2020

How much is the gain or loss on reclassification : Karen Company recorded transfer of all shares to trading securities when the fair value was Php 55/share. How much is the gain or loss on reclassification date

What do you think the main points of the article are : How does this article and the contents relate to any experiences you may have had with a company. Add the web link so I can compare my experiences to yours.

Write an example of a display rule for the emotion you chose : Display rules for different types of emotions were discussed within this chapter. It is also notable that display rules are different among various cultures.

Compute the expected contribution of the new product : A 40 percent probability that the contribution will be a negative P400,000. Compute the expected contribution of the new product

Do you think that philippines would not be as it is today : Spaniards occupying the Philippines didn't happen in the first place, do you think that the Philippines would not be as it is today? 10 sentences

User Account

All Pages