A Company had various equity investments at fair value through profit or loss transactions during 2019 and 2020. The acquisition cost of all the securities in its portfolio during 2019 was P532,000. At December 31, 2019 and December 31, 2020, the market value of these equity investments were P541,000 and P512,000, respectively. In 2021, all of these securities were sold for P550,000. 1. Assuming no other transactions are noted regarding these financial assets at fair value through profit or loss, what is the amount of unrealized gain/loss reported in 2020 income statement relating to these securities? a. P29,000 loss b. P20,000 loss c. P29,000 gain d. P20,000 gain 2. What is the gain on sale reported in A Company's 2021 income statement? a. P38,000 b. P18,000 c. P9,000 d. P0
A Company had various equity investments at fair value through profit or loss transactions during 2019 and 2020. The acquisition cost of all the securities in its portfolio during 2019 was P532,000. At December 31, 2019 and December 31, 2020, the market value of these equity investments were P541,000 and P512,000, respectively. In 2021, all of these securities were sold for P550,000. 1. Assuming no other transactions are noted regarding these financial assets at fair value through profit or loss, what is the amount of unrealized gain/loss reported in 2020 income statement relating to these securities? a. P29,000 loss b. P20,000 loss c. P29,000 gain d. P20,000 gain 2. What is the gain on sale reported in A Company's 2021 income statement? a. P38,000 b. P18,000 c. P9,000 d. P0
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
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 21P: Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate...
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A Company had various equity investments at fair value through profit or loss transactions during 2019 and 2020. The acquisition cost of all the securities in its portfolio during 2019 was P532,000. At December 31, 2019 and December 31, 2020, the market value of these equity investments were P541,000 and P512,000, respectively. In 2021, all of these securities were sold for P550,000.
1. Assuming no other transactions are noted regarding these financial assets at fair value through profit or loss, what is the amount of unrealized gain/loss reported in 2020 income statement relating to these securities?
1. Assuming no other transactions are noted regarding these financial assets at fair value through profit or loss, what is the amount of unrealized gain/loss reported in 2020 income statement relating to these securities?
a. P29,000 loss
b. P20,000 loss
c. P29,000 gain
d. P20,000 gain
2. What is the gain on sale reported in A Company's 2021 income statement?
a. P38,000
b. P18,000
c. P9,000
d. P0
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