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Revenues and operating (marketing and administrative) expenses for the year 2021 are P7,500,000 and P4,000,000 respectively. How much is the change in Retained Earnings for the year 2021 due to the equity securities indicate whether increase or decrease

Revenues and operating (marketing and administrative) expenses for the year 2021 are P7,500,000 and P4,000,000 respectively. How much is the change in Retained Earnings for the year 2021 due to the equity securities indicate whether increase or decrease

Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 15.21EX
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Revenues and operating (marketing and administrative) expenses for the year 2021 are P7,500,000 and P4,000,000 respectively. How much is the change in Retained Earnings for the year 2021 due to the equity securities indicate whether increase or decrease?
Problem 15-6 (IAA) During 2020, the first year of operations, Beneath Company purchased the following equity securities: Cost Market value Market value December 31, 2020 December 81, 2021 Security One Security Two Security Three Security Four 2,200,000 700,000 1,600,000 - 2,000,000 1,400,000 1,000,000 1,500,000 2,500,000 900,000 1,100,000 1,600,000 1,200,000 Security One and Security Two are held for trading and Security Three and Security Four are measured as at fair value through other comprehensive income by election. During 2021, the entity sold one-half of Security One for P1,000,000, and one-half of Security Four for P1,300,000.
Transcribed Image Text:Problem 15-6 (IAA) During 2020, the first year of operations, Beneath Company purchased the following equity securities: Cost Market value Market value December 31, 2020 December 81, 2021 Security One Security Two Security Three Security Four 2,200,000 700,000 1,600,000 - 2,000,000 1,400,000 1,000,000 1,500,000 2,500,000 900,000 1,100,000 1,600,000 1,200,000 Security One and Security Two are held for trading and Security Three and Security Four are measured as at fair value through other comprehensive income by election. During 2021, the entity sold one-half of Security One for P1,000,000, and one-half of Security Four for P1,300,000.
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