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XYZ Inc. purchased 35,000 voting shares out of KLM Inc.'s 50,000 outstanding voting shares for $350,000 on January 1, 2021. On the date of acquisition, KLM's common shares and retained earnings were valued at $120,000 and $180,000, respectively. KLM's book values approximated its fair values on the acquisition date except for a patent and a trademark, neither of which had been previously recorded. The fair values of the patent and trademark on the date of acquisition were $30,000 and $20,000, respectively. On January 2, 2021, XYZ sold 7,000 shares of KLM on the open market for $60,000. XYZ Inc. uses the equity method to account for its investment in KLM Inc.

What would be the amount of the gain or loss on the sale of the 7,000 shares?

Answer :

The gain or loss on the sale of 7,000 shares of KLM Inc. should be determined by calculating the cost and ownership in the net assets of the sold shares, considering book values and fair values, including copyrights and trademarks.

Para determinar la ganancia o la pérdida en la venta de 7.000 acciones de KLM Inc., debemos calcular el costo y la propiedad en los activos netos de las acciones vendidas. Al principio, XYZ Inc. compró 35,000 acciones de las 50,000 acciones exentas de KLM Inc. por $350,000. Nuestro costo por parte es de $10 ($350,000 dividido por 35 000 acciones).KLM's book values were $120,000 for common shares and $180,000 for retained earnings on the day of acquisition. Sin embargo, también debemos tener en cuenta los valores justos de los derechos de marca y patentes, que fueron de treinta mil dólares cada uno.Los valores del libro eran aproximados a los valores justos excepto por los derechos de autor y la marca, por lo que debemos distribuir proporcionalmente la diferencia entre los valores del libro y los valores justos.

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