(b) During the year 2017, Nestle Corp. sold 2,000 shares of Polland Co. for P114,600 and purchased 2,000 more shares of Lj Inc. and 1,000 shares of Dwarfy Company. On December 31, 2017, Nestle's equity securities portfolio consisted of the following: Quantity 1,000 shares 2,000 shares 1,000 shares 2,000 shares Fair value Investment Lj, Inc. Lj, Inc. Dwarfy Company Alabang Corp. Totals Cost P45,000 99,000 48,000 216,000 P408,000 P60,000 120,000 36,000 66,000 P282,000 What is the carrying amount of the investments on December 31, 2017? a.408,000 b. 444,000 c. 282,000 d. 246,000

(b) During the year 2017, Nestle Corp. sold 2,000 shares of Polland Co. for P114,600 and purchased 2,000 more shares of Lj Inc. and 1,000 shares of Dwarfy Company. On December 31, 2017, Nestle's equity securities portfolio consisted of the following: Quantity 1,000 shares 2,000 shares 1,000 shares 2,000 shares Fair value Investment Lj, Inc. Lj, Inc. Dwarfy Company Alabang Corp. Totals Cost P45,000 99,000 48,000 216,000 P408,000 P60,000 120,000 36,000 66,000 P282,000 What is the carrying amount of the investments on December 31, 2017? a.408,000 b. 444,000 c. 282,000 d. 246,000

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 15E

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