The Gypsy Corporation has the following portfolio of investment securities (designated at fair value through other comprehensive income) at December 31, 2019. Purchase price Fair value 12/31/18 Dizon ordinary shares (5,000 shares) P225,000 P250,000 Monterey preference shares (3,500 shares) 133,000 140,000 Garcia ordinary shares (1,000 shares) 180,000 178,000 On April 30. 2020, Gypsy sold all the Dizon shares at P54 per share. In addition, on July 31, 2020, 3,000 Barney ordinary shares were acquired at P59. The December 31, 220 fair values were: Monterey, P135,000; Garcia, P190,000; and Barney, P200,000. Upon disposal of equity investments, unrealized gains and losses on equity investments sold is transferred to retained earnings. What should be the balance of Unrealized Gains and Losses that will be shown In the equity section of the December 31,2020 statement of financial position? a. P7,000 b. P30,000 c. P35,000 d. P60,000
The Gypsy Corporation has the following portfolio of investment securities (designated at fair value through other comprehensive income) at December 31, 2019. Purchase price Fair value 12/31/18 Dizon ordinary shares (5,000 shares) P225,000 P250,000 Monterey preference shares (3,500 shares) 133,000 140,000 Garcia ordinary shares (1,000 shares) 180,000 178,000 On April 30. 2020, Gypsy sold all the Dizon shares at P54 per share. In addition, on July 31, 2020, 3,000 Barney ordinary shares were acquired at P59. The December 31, 220 fair values were: Monterey, P135,000; Garcia, P190,000; and Barney, P200,000. Upon disposal of equity investments, unrealized gains and losses on equity investments sold is transferred to retained earnings. What should be the balance of Unrealized Gains and Losses that will be shown In the equity section of the December 31,2020 statement of financial position? a. P7,000 b. P30,000 c. P35,000 d. P60,000
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 50P
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The Gypsy Corporation has the following portfolio of investment securities (designated at fair value through other comprehensive income) at December 31, 2019.
Purchase price Fair value 12/31/18
Dizon ordinary shares (5,000 shares) P225,000 P250,000
Montereypreference shares (3,500 shares) 133,000 140,000
Garcia ordinary shares (1,000 shares) 180,000 178,000
On April 30. 2020, Gypsy sold all the Dizon shares at P54 per share. In addition, on July 31, 2020, 3,000 Barney ordinary shares were acquired at P59. The December 31, 220 fair values were: Monterey, P135,000; Garcia, P190,000; and Barney, P200,000.
Upon disposal of equity investments, unrealized gains and losses on equity investments sold is transferred to retained earnings.
What should be the balance of Unrealized Gains and Losses that will be shown In the equity section of the December 31,2020statement of financial position ?
Purchase price Fair value 12/31/18
Dizon ordinary shares (5,000 shares) P225,000 P250,000
Monterey
Garcia ordinary shares (1,000 shares) 180,000 178,000
On April 30. 2020, Gypsy sold all the Dizon shares at P54 per share. In addition, on July 31, 2020, 3,000 Barney ordinary shares were acquired at P59. The December 31, 220 fair values were: Monterey, P135,000; Garcia, P190,000; and Barney, P200,000.
Upon disposal of equity investments, unrealized gains and losses on equity investments sold is transferred to retained earnings.
What should be the balance of Unrealized Gains and Losses that will be shown In the equity section of the December 31,2020
a. P7,000
b. P30,000
c. P35,000
d. P60,000
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