Determine the amount of the equity account Cumulative Unrealized Gains or Losses - OCI for year 2018.

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
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
icon
Related questions
Topic Video
Question

Determine the amount of the equity account Cumulative Unrealized Gains or Losses - OCI for year 2018.

Coco Corporation holds ordinary shares of Musica, Inc. acquired as follows:
July 16, 2018, 1,250 shares for 110,000
September 19, 2019, 750 shares for P60,000
The shares were classified as equity investments at fair value through other comprehensive income. Fair
values on December 31, 2018 and 2019 were P85 and P90 respectively.
In 2020, Coco Corporation received 2,000 rights to purchase Musica Inc., ordinary shares at P80 per
share. Five rights are required to purchase one share. Melody used rights to purchase additional 300
shares of Musica Inc. when each share sold at P100. Subsequently, Coco sold the remaining rights at
P4.50 each.
On December 31, 2020, Musica Inc., ordinary shares sold at P98.
Transcribed Image Text:Coco Corporation holds ordinary shares of Musica, Inc. acquired as follows: July 16, 2018, 1,250 shares for 110,000 September 19, 2019, 750 shares for P60,000 The shares were classified as equity investments at fair value through other comprehensive income. Fair values on December 31, 2018 and 2019 were P85 and P90 respectively. In 2020, Coco Corporation received 2,000 rights to purchase Musica Inc., ordinary shares at P80 per share. Five rights are required to purchase one share. Melody used rights to purchase additional 300 shares of Musica Inc. when each share sold at P100. Subsequently, Coco sold the remaining rights at P4.50 each. On December 31, 2020, Musica Inc., ordinary shares sold at P98.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage