On January 2, 2023, Precious & Gracious Company purchased marketable equity securities as investment to be measured at fair value. The cost and market value on December 31, 2023 were as follows: Security Classification X Trading Securities Y Non-Trading - OCI Z Non-Trading - OCI Cost Market Value Dec 31, 2023 800,000 840,000 2,500,000 2,700,000 3,700,000 3,500,000 The entity sold 75% of Security X shares on June 30, 2024 for P680,000. The entity sold 40% of Security Y shares on October 1, 2024 for P1,300,000. No shares sold for Security Z in year 2024. On December 31, 2024, the remaining securities X, Y, and Z has the following fair values: P195,000; P1,600,000; and P3,850,000, respectively. 27. What total amount should be reported to retained earnings in 2024 for the sale of Security Y? a. 200,000 b. 220,000 300,000 d. 420,000 28. How much is the gain/(loss) on sale of Security X to be reported in income statement on December 31, 2024? a. 50,000 b. 80,000 C. (120,000) d. (160,000)

On January 2, 2023, Precious & Gracious Company purchased marketable equity securities as investment to be measured at fair value. The cost and market value on December 31, 2023 were as follows: Security Classification X Trading Securities Y Non-Trading - OCI Z Non-Trading - OCI Cost Market Value Dec 31, 2023 800,000 840,000 2,500,000 2,700,000 3,700,000 3,500,000 The entity sold 75% of Security X shares on June 30, 2024 for P680,000. The entity sold 40% of Security Y shares on October 1, 2024 for P1,300,000. No shares sold for Security Z in year 2024. On December 31, 2024, the remaining securities X, Y, and Z has the following fair values: P195,000; P1,600,000; and P3,850,000, respectively. 27. What total amount should be reported to retained earnings in 2024 for the sale of Security Y? a. 200,000 b. 220,000 300,000 d. 420,000 28. How much is the gain/(loss) on sale of Security X to be reported in income statement on December 31, 2024? a. 50,000 b. 80,000 C. (120,000) d. (160,000)

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 16E

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