Problem 16-16 (IAA) entity to be held for trading. During 2021, Reminiscent Company bought shares of another During 2021, Reminiscent Company bought shares of another 20,000 shares @ P100 30,000...


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Problem 16-16 (IAA)<br>entity to be held for trading.<br>During 2021, Reminiscent Company bought shares of another<br>During 2021, Reminiscent Company bought shares of another<br>20,000 shares @ P100<br>30,000 shares @ P120<br>2,000,000<br>3,600,000<br>1<br>June<br>December 1<br>Transactions for 2022<br>Received cash dividend at P10 per share.<br>Received 20% share dividend.<br>Sold 30,000 shares at P125 per share.<br>10<br>January<br>20<br>January<br>December 10<br>1. What amount should be recognized as gain on sale of<br>investment using the FIFO approach?<br>a. 1,150,000<br>b..<br>950,000<br>150,000<br>550,000<br>с.<br>d.<br>2. What amount should be recognized as gain on sale of<br>investment using the average approach?<br>a. 950,000<br>b. 750,000<br>c. 800,000<br>d. 900,000<br>3. What total amount should be reported as income from<br>the investment using the FIFO approach?<br>a. 1,650,000<br>b. 1,450,000<br>c. 1,750,000<br>d.<br>500,000<br>

Extracted text: Problem 16-16 (IAA) entity to be held for trading. During 2021, Reminiscent Company bought shares of another During 2021, Reminiscent Company bought shares of another 20,000 shares @ P100 30,000 shares @ P120 2,000,000 3,600,000 1 June December 1 Transactions for 2022 Received cash dividend at P10 per share. Received 20% share dividend. Sold 30,000 shares at P125 per share. 10 January 20 January December 10 1. What amount should be recognized as gain on sale of investment using the FIFO approach? a. 1,150,000 b.. 950,000 150,000 550,000 с. d. 2. What amount should be recognized as gain on sale of investment using the average approach? a. 950,000 b. 750,000 c. 800,000 d. 900,000 3. What total amount should be reported as income from the investment using the FIFO approach? a. 1,650,000 b. 1,450,000 c. 1,750,000 d. 500,000

Jun 11, 2022
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