During 2020, Strawberry Corporation purchased several equity securities, all of which are designated as equity investments at fair value through profit or loss. The cost and market values at December 31,2020 were as follows: Security AB Company ordinary - Cost -P28,000 ; Market -P34,000 ; 200 shares CD Company ordinary - Cost -P 170,000 ; Market -P 153,000 ; 1000 shares EF Company ordinary - Cost- P315,000 ; Market - P295,000 ; 2000 shares Appropriate valuation entry was made on December 31, 2020. On January 31, 2021, Strawberry sold 1,000 ordinary shares of CD Company at P155 per share, incurring P900 in broker's commission and taxes. On December 31, 2021, the market values of the ordinary shares of AB Company and EF Company were P150 and P153 per share, respectively. 1. What Is the unrealized gain (loss) reported in profit or loss for the year 2020? a P31,000 b. P(31,000) c. P43,000 d.P(43,000) 2. How much was the gain or loss on the sale of CD shares? a. P1,100 gain b. P2,000 gain c P15,000 loss d. P15,900 loss
During 2020, Strawberry Corporation purchased several equity securities, all of which are designated as equity investments at fair value through profit or loss. The cost and market values at December 31,2020 were as follows: Security AB Company ordinary - Cost -P28,000 ; Market -P34,000 ; 200 shares CD Company ordinary - Cost -P 170,000 ; Market -P 153,000 ; 1000 shares EF Company ordinary - Cost- P315,000 ; Market - P295,000 ; 2000 shares Appropriate valuation entry was made on December 31, 2020. On January 31, 2021, Strawberry sold 1,000 ordinary shares of CD Company at P155 per share, incurring P900 in broker's commission and taxes. On December 31, 2021, the market values of the ordinary shares of AB Company and EF Company were P150 and P153 per share, respectively. 1. What Is the unrealized gain (loss) reported in profit or loss for the year 2020? a P31,000 b. P(31,000) c. P43,000 d.P(43,000) 2. How much was the gain or loss on the sale of CD shares? a. P1,100 gain b. P2,000 gain c P15,000 loss d. P15,900 loss
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
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 5MC
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Question
During 2020, Strawberry Corporation purchased several equity securities, all of which are designated as equity investments at fair value through profit or loss. The cost and market values at December 31,2020 were as follows:
Security
AB Company ordinary - Cost -P28,000 ; Market -P34,000 ; 200 shares
CD Company ordinary - Cost -P 170,000 ; Market -P 153,000 ; 1000 shares
EF Company ordinary - Cost- P315,000 ; Market - P295,000 ; 2000 shares
Appropriate valuation entry was made on December 31, 2020. On January 31, 2021, Strawberry sold 1,000 ordinary shares of CD Company at P155 per share, incurring P900 in broker's commission and taxes.
On December 31, 2021, the market values of the ordinary shares of AB Company and EF Company were P150 and P153 per share, respectively.
1. What Is the unrealized gain (loss) reported in profit or loss for the year 2020?
Security
AB Company ordinary - Cost -P28,000 ; Market -P34,000 ; 200 shares
CD Company ordinary - Cost -P 170,000 ; Market -P 153,000 ; 1000 shares
EF Company ordinary - Cost- P315,000 ; Market - P295,000 ; 2000 shares
Appropriate valuation entry was made on December 31, 2020. On January 31, 2021, Strawberry sold 1,000 ordinary shares of CD Company at P155 per share, incurring P900 in broker's commission and taxes.
On December 31, 2021, the market values of the ordinary shares of AB Company and EF Company were P150 and P153 per share, respectively.
1. What Is the unrealized gain (loss) reported in profit or loss for the year 2020?
a P31,000
b. P(31,000)
c. P43,000
d.P(43,000)
2. How much was the gain or loss on the sale of CD shares?
a. P1,100 gain
b. P2,000 gain
c P15,000 loss
d. P15,900 loss
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