The following investment portfolio of equity securities (all acquired during 2019) accounted for as fair value through other comprehensive income are held by JKL Corporation on December 31, 2020: Investment Ivan Company shares Jericho, Inc. shares. Kent Co. shares Acquisition Cost P2,200,000 700,000 2,000,000 Fair value, 12/31/20 P1,200,000 2,000,000 2,500,000 During 2021, one-fourth of the Ivan Company shares were sold at its fair value of P230,000 while one- half of the Kent Co. shares were sold at its fair value of P700,000. Had no shares been sold by JKL Corporation in 2021, the fair value of the equity securities at year-end are as follows: Investment Ivan Company shares Jericho, Inc. shares Kent Co. shares Fair value, 12/31/21 P1,900,000 1,100,000 1,200,000

The following investment portfolio of equity securities (all acquired during 2019) accounted for as fair value through other comprehensive income are held by JKL Corporation on December 31, 2020: Investment Ivan Company shares Jericho, Inc. shares. Kent Co. shares Acquisition Cost P2,200,000 700,000 2,000,000 Fair value, 12/31/20 P1,200,000 2,000,000 2,500,000 During 2021, one-fourth of the Ivan Company shares were sold at its fair value of P230,000 while one- half of the Kent Co. shares were sold at its fair value of P700,000. Had no shares been sold by JKL Corporation in 2021, the fair value of the equity securities at year-end are as follows: Investment Ivan Company shares Jericho, Inc. shares Kent Co. shares Fair value, 12/31/21 P1,900,000 1,100,000 1,200,000

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 18E

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