(b) During the year 2017, Nestle Corp. sold 2,000 shares of Polland Co. for P114,600 and purchased 2,000 moreshares of Lj Inc. and 1,000 shares of Dwarfy Company. On December 31, 2017, Nestle's equity securities portfolioconsisted of the following:InvestmentQuantity1,000 shares2,000 shares1,000 sharesCostFair valueLj, Inc.Lj, Inc.Dwarfy CompanyAlabang Corp.TotalsP45,00099,00048,000216,000P408,000P60,000120,00036,00066,000P282,0002,000 shares7. What amount of unrealized gain or loss should be reported in the income statement for the year ended December31, 2017?P126,000 unrealized gainb. P126,000 unrealized lossa.P108,000 unrealized gaind. P108,000 unrealized lossс. NESTLE Inc., invested its excess cash in equity securities during 2016. The business model for these investments isto profit from trading on price changes.(a) As of December 31, 2016, the equity investment portfolio consisted of the following:InvestmentLj, Inc.Polland Co.Alabang Corp.TotalQuantity1,000 shares2,000 shares2,000 sharesCostP45,000120,000216,000P381,000Fair ValueP63,000126,000180,000P369,000

The question is multiple choice question. Required Choose the Correct Option.

Answered: (b) During the year 2017, Nestle Corp.…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 13E

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