5. In 2020, the entity purchased the following equity securities for the purpose of selling them in the near term. 12/31/2021 P1,920,000 Fair Values Cost P2,000,000 On June 30, 2022, the entity transferred its investment to financial assets at FVTOCI because of a rare circumstance (arising from a single event that is unusual and highly unlikely to recur in the near term). 6/30/2022 P1,800,000 12/31/2022 P1,720,000 What amount should the entity report as unrealized loss in its 2022 profit or loss? a. P200,000 b.P120,000 c. P80,000 d.PO

5. In 2020, the entity purchased the following equity securities for the purpose of selling them in the near term. 12/31/2021 P1,920,000 Fair Values Cost P2,000,000 On June 30, 2022, the entity transferred its investment to financial assets at FVTOCI because of a rare circumstance (arising from a single event that is unusual and highly unlikely to recur in the near term). 6/30/2022 P1,800,000 12/31/2022 P1,720,000 What amount should the entity report as unrealized loss in its 2022 profit or loss? a. P200,000 b.P120,000 c. P80,000 d.PO

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8RE

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LO.4, 7 In December 2019, Carl Corporation sold land it held as an investment. The corporation received 50,000 in 2019 and a note payable (with adequate interest) for 150,000 to be paid in 2021. Carl Corporations cost of the land was 80,000. The corporation has a 90,000 net capital loss carryover that will expire in 2019. Should Carl Corporation report the sale in 2019 or use the installment method to report the income as payments are received?
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