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 P101,600 November 5, 2019 - 3,000 shares at P104 per share On January 25, 2020, Jam Company received cash dividend of P4.50 per share. On June 14, 2020, it received a 10% bonus issue and on July 18, 2020, Jam sold 1,500 shares at P95 per share. Market values of Mad Company ordinary shares are as follows: December 31,2019 - P106.70 per share December 31, 2020 - P 96.00 per share What is the amount transferred to retained earnings if Jam Company opted to transfer the unrealized gain or loss relating to the shares sold.? A. P11,100 B. P 5,500 C. P5,100 D. P 1,500
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 P101,600
November 5, 2019 - 3,000 shares at P104 per share
On January 25, 2020, Jam Company received cash dividend of P4.50 per share. On
June 14, 2020, it received a 10% bonus issue and on July 18, 2020, Jam sold 1,500
shares at P95 per share.
Market values of Mad Company ordinary shares are as follows:
December 31,2019 - P106.70 per share
December 31, 2020 - P 96.00 per share
What is the amount transferred to retained earnings if Jam Company opted to transfer the unrealized gain or loss relating to the shares sold.?
A. P11,100
B. P 5,500
C. P5,100
D. P 1,500
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