On January 1, 2019, Pacita Corp. purchased marketable equity securities to be held for trading purposes for P2,000,000. The company also paid commission, taxes and other transaction costs amounting to P50,000. Because the securities were acquired not for immediate trading, Pacita exercise its option to take the change in fair value through other comprehensive income. The securities had the following fair values at December 31, 2019 and 2020 respectively: P1,750,000 and P2,100,000. No securities were sold during 2019 or 2020. What amount of unrealized gain or loss should be reported in the December 31, 2020 statement of financial position as a component of shareholders' equity? (A) P50,000 cumulative unrealized gain (B P200,000 cumulative unrealized gain P250,000 cumulative unrealized loss D P100,000 cumulative unrealized gain
On January 1, 2019, Pacita Corp. purchased marketable equity securities to be held for trading purposes for P2,000,000. The company also paid commission, taxes and other transaction costs amounting to P50,000. Because the securities were acquired not for immediate trading, Pacita exercise its option to take the change in fair value through other comprehensive income. The securities had the following fair values at December 31, 2019 and 2020 respectively: P1,750,000 and P2,100,000. No securities were sold during 2019 or 2020. What amount of unrealized gain or loss should be reported in the December 31, 2020 statement of financial position as a component of shareholders' equity? (A) P50,000 cumulative unrealized gain (B P200,000 cumulative unrealized gain P250,000 cumulative unrealized loss D P100,000 cumulative unrealized gain
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
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