On January 1, 2020, May Company appropriately reported a debit balance of P125,000 (before income tax effect) in the fair value adjustment account on its investment to other comprehensive Income, There was no change during 2020 in the composition of the portfolio of investments. Pertinent data on December 31, 2020 are as follows: Securities Cost Market C Pl,500,000 PI,475,000 P 1,250,000 1,000,000 A 2,250,000 1,750,000 Total P5,000,000 P4,225,000
On January 1, 2020, May Company appropriately reported a debit balance of P125,000 (before income tax effect) in the fair value adjustment account on its investment to other comprehensive Income, There was no change during 2020 in the composition of the portfolio of investments. Pertinent data on December 31, 2020 are as follows: Securities Cost Market C Pl,500,000 PI,475,000 P 1,250,000 1,000,000 A 2,250,000 1,750,000 Total P5,000,000 P4,225,000
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 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
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On January 1, 2020, May Company appropriately reported a debit balance of P125,000 (before income tax effect) in the fair value adjustment account on its investment to other comprehensive Income, There was no change during 2020 in the composition of the portfolio of investments. Pertinent data on December 31, 2020 are as follows:
Securities Cost Market
C Pl,500,000 PI,475,000
P 1,250,000 1,000,000
A 2,250,000 1,750,000
Total P5,000,000 P4,225,000
1. By what amount the equity securities had decreased during 2020?
Securities Cost Market
C Pl,500,000 PI,475,000
P 1,250,000 1,000,000
A 2,250,000 1,750,000
Total P5,000,000 P4,225,000
1. By what amount the equity securities had decreased during 2020?
a. none
b. 125,000
c. 775,000
d. 900,000
2. What amount of unrealized loss should May company report in December 31,2020 shareholder's equity related to its investment, ignore income tax?
a. none
b. 125,000
c. 775,000
d. 900,000
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