On January 1, 2020, the Gim Corporation purchased equity securities for P2,000,000. The company also paid commissions, taxes and other transaction costs amounting to P50,000. Because the securities were not acquired for immediate trading. Gim exercised the option to take the change in fair value through other comprehensive income. The securities had fair values at December 31, 2020 and 2021, respectively: P1,750,000 and P2,100,000. No securities were sold during 2020. What amount of unrealized gain (loss) should be reported in the 2020 statement of financial position? *

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, the Gim Corporation purchased equity securities for P2,000,000. The
company also paid commissions, taxes and other transaction costs amounting to P50,000.
Because the securities were not acquired for immediate trading, Gim exercised the option to
take the change in fair value through other comprehensive income. The securities had fair
values at December 31, 2020 and 2021, respectively: P1,750,000 and P2,100,000. No securities
were sold during 2020. What amount of unrealized gain (loss) should be reported in the 2020
statement of financial position? *
P50,000 cumulative unrealized gain
P200,000 cumulative unrealized loss
P100,000 cumulative unrealized gain
P250,000 cumulative unrealized loss
Transcribed Image Text:On January 1, 2020, the Gim Corporation purchased equity securities for P2,000,000. The company also paid commissions, taxes and other transaction costs amounting to P50,000. Because the securities were not acquired for immediate trading, Gim exercised the option to take the change in fair value through other comprehensive income. The securities had fair values at December 31, 2020 and 2021, respectively: P1,750,000 and P2,100,000. No securities were sold during 2020. What amount of unrealized gain (loss) should be reported in the 2020 statement of financial position? * P50,000 cumulative unrealized gain P200,000 cumulative unrealized loss P100,000 cumulative unrealized gain P250,000 cumulative unrealized loss
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